Show undervalued

Screening Filters

1. Price-to-Earnings (P/E) Ratio (Trailing Twelve Months) ≤ 12:

   • Purpose: To identify stocks that are trading at a low valuation relative to their earnings.
   • Rationale: A low P/E ratio suggests that the stock may be undervalued compared to its earnings, which aligns with the user's request to find undervalued stocks. A threshold of 12 is commonly used to filter for stocks that are cheaper relative to their earnings.

2. Price-to-Book (P/B) Ratio ≤ 1.2:

   • Purpose: To find stocks trading near or below their book value, which can indicate undervaluation.
   • Rationale: A P/B ratio below 1.2 suggests that the stock price is close to or below the company's net asset value, which is a key metric for identifying undervalued stocks, especially in asset-heavy industries.

3. Dividend Yield (Trailing Twelve Months) ≥ 3%:

   • Purpose: To focus on stocks that provide a steady income stream through dividends, which can also indicate financial stability and shareholder returns.
   • Rationale: A higher dividend yield can signal that a stock is undervalued, as the yield increases when the stock price is low relative to the dividend payout. This filter ensures that the selected stocks not only appear undervalued but also provide tangible returns to investors.

4. Market Capitalization ≥ $1 Billion:

   • Purpose: To exclude smaller, riskier companies and focus on more established firms.
   • Rationale: Larger companies are generally more stable and less prone to extreme volatility. This filter ensures that the results are focused on undervalued stocks from companies with a significant market presence, reducing the likelihood of including speculative or micro-cap stocks.

Why Results Match:

• The combination of low P/E and P/B ratios directly targets undervalued stocks by focusing on companies trading at a discount relative to their earnings and book value.
• The dividend yield filter adds an additional layer of value by ensuring that the stocks not only appear undervalued but also provide consistent income, which is often a sign of financial health.
• The market capitalization filter ensures that the results are limited to more established companies, reducing the risk of including highly speculative or illiquid stocks.

Together, these filters are well-suited to identify stocks that are likely undervalued based on fundamental metrics, aligning with the user's request.