Friday, February 12, 2021

Stock Screening Cheat sheet

For any stock of any sector, following criteria should be considered:

PE Ratio:

0-10 - means the company is undervalued, and its earningsis likely to go down.
11-17 - this is considered as a fair, stable range of PE.
18-25 - the company is overvalued. Earnings have gone up substancially, in the recent times.
> 25 - means the investors have very high expections about the growth of this company.

Price to Sale Ratio: should be < 1


PEG Ratio: should be < 1

Price to Book Ratio: should be < 3

Price to Cashflow Ratio: should be < 15

EPS Growth: should be > 25




 Disclaimer: I have written this cheat sheet for my own purpose. Please do not use it as an advice.




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