Show me 10 undervalued investment options

Screening Filters

1. Market Cap ≥ $2,000,000,000

   • Purpose: Focus on established, relatively stable U.S. companies.
   • Rationale: The user wants “investment options,” not speculative microcaps. A $2B+ market cap tilts results toward mid- and large-cap names that:
     • Have better liquidity (easier to enter/exit positions)
     • Are more institutionally followed and transparent
     • Typically have more durable business models than small caps

2. Exchange = XNYS, XNAS, XASE (NYSE, NASDAQ, NYSE American)

   • Purpose: Restrict to major U.S. exchanges.
   • Rationale: This directly matches “US stock market” and avoids OTC/pink sheet names that can be illiquid, poorly regulated, and higher risk. Major exchanges also have stricter listing standards, improving overall quality.

3. Return on Equity (ROE) ≥ 10%

   • Purpose: Ensure the companies are profitable and reasonably efficient at generating returns on shareholders’ capital.
   • Rationale: “Undervalued” should ideally apply to good businesses trading at attractive prices, not weak or unprofitable ones. A minimum 10% ROE:
     • Filters for companies with solid profitability
     • Helps avoid value traps where a stock looks cheap only because the business is poor

4. Debt-to-Equity ≤ 1.5

   • Purpose: Screen out highly leveraged companies.
   • Rationale: High debt can make a stock appear “cheap” on earnings multiples, but with much higher financial risk. Capping D/E at 1.5:
     • Focuses on businesses with manageable leverage
     • Increases the chance that “undervaluation” is due to mispricing rather than balance sheet risk

5. P/E (TTM) between 5 and 18

   • Purpose: Identify stocks trading at reasonable or low earnings multiples, while avoiding extreme outliers.
   • Rationale:
     • Upper bound (≤ 18): Targets companies that are cheaper than high-growth or momentum names, aligning with an “undervalued” focus rather than “growth at any price.”
     • Lower bound (≥ 5): Excludes ultra-low P/Es which are often:
       • Distorted by one-time earnings
       • Signaling structural problems (potential value traps)
     • Together, this band captures stocks that are plausibly undervalued without being statistically extreme.

6. Price-to-Free-Cash-Flow (P/FCF) between 5 and 20

   • Purpose: Ensure valuation is also attractive on a cash-flow basis, not just on earnings.
   • Rationale: Free cash flow is harder to manipulate than accounting earnings.
     • Upper bound (≤ 20): Focuses on stocks that are reasonably priced for their cash-generating ability, consistent with value/undervaluation.
     • Lower bound (≥ 5): Again avoids extreme “too good to be true” cheapness that might reflect temporary anomalies or serious underlying issues.
   • Using both P/E and P/FCF reduces the risk that a stock only looks cheap on one metric due to accounting quirks.

Why Results Match “10 Undervalued Investment Options in the US Stock Market”

• US-focused: Limiting to NYSE, NASDAQ, and NYSE American directly targets the main U.S. stock exchanges the user cares about.
• Investable quality: Market cap, ROE, and debt filters tilt toward financially solid, established companies—suitable as “investment options” rather than speculative trades.
• Valuation emphasis: The P/E and P/FCF ranges explicitly target stocks that are cheaper than the broader market or growth names, consistent with an “undervalued” style.
• Risk control within value: By excluding extreme low multiples and highly leveraged firms, the screen aims for potentially mispriced quality instead of simply the “cheapest” (often riskiest) names.

Overall, these filters work together to surface U.S.-listed, mid/large-cap, profitable, reasonably levered companies that trade at relatively attractive valuations—exactly the profile you’d expect for 10 “undervalued investment options.”