price to earnings < 20; price to book < 3;
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pe < 20; pb < 3
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Undervalued stocks based on earnings and book value
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Value
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price to sales < 5; return on equity > 15%
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ps < 5; roe > 15
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Efficient companies that are cheap relative to sales
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Value
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EV/EBITDA < 10; debt to equity < 1
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ev/ebitda < 10; d/e < 1;
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Low valuation and low leverage
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Value
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free cash flow yield > 5%; price to FCF < 20
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fcf yld > 5; p/fcf < 20
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Strong cash flow generators at a good price
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Value
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PEG ratio < 1.5; P/E < 25; P/E>0
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peg < 1.5; pe < 25
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Combining value and growth using PEG
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Value + Growth
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revenue/share growth > 8%; book value/share growth > 5%
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rev/share gr > 8; bvps gr > 5
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Companies growing both revenue and intrinsic value
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Growth
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market cap > 10 b; EPS growth > 10%
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mk cap > 10b; eps gr > 10
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Large-cap companies with strong earnings growth
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Growth
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revenue growth > 8%; net income growth > 10%
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rev gr > 8; net inc gr > 10
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Fast-growing companies with top- and bottom-line growth
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Growth
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diluted EPS growth > 15%; ROE > 10%
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epsd gr > 15; roe > 10
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Profitable companies with strong earnings growth
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Growth
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dividend yield > 3%; payout ratio < 70%
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div yld > 3; payout ratio < 70
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Sustainable income stocks
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Income
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ROE > 15%; debt/equity < 0.5; P/E < 20
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roe > 15; d/e < 0.5; pe < 20
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Profitable, stable companies at reasonable prices
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Buffett
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net margin > 10%; free cash flow yield > 6%; price to book < 3
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net margin > 10; fcf yld > 6; pb < 3;
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High-margin businesses with strong cash generation
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Buffett
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ROE > 20%; revenue growth TTM > 5%; P/E < 25
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roe > 20%; rev gr ttm > 5; pe < 25
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Exceptional profitability with steady growth
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Buffett
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gross margin > 40%; operating margin > 15%; debt/assets < 0.3
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gp margin > 40; op margin > 15; d/a < 0.3
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Strong moats with conservative balance sheets
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Buffett
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dividend yield > 2%; payout ratio < 50%; ROE > 15%
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div yld > 2; payout < 50; roe > 15
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Sustainable dividend payers with strong returns
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Buffett
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PEG ratio < 1; EPS growth > 15%; P/E < 30
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peg < 1; eps gr > 15; pe < 30
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Growth at a reasonable price (GARP)
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Lynch
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revenue growth > 20%; net income growth > 25%; market cap < 10B
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rev gr > 20; net inc gr > 25; mk cap < 10b
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Fast-growing smaller companies
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Lynch
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P/E < EPS growth; revenue growth > 10%; debt/equity < 1
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pe < eps gr; rev gr > 10; d/e < 1; pe > 0
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Lynch's classic PEG with growth momentum
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Lynch
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EPS growth > 15%; revenue growth > 12%; ROE > 12%
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eps gr > 15; rev gr > 12; roe > 12
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Consistent growth in key metrics
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Lynch
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P/E < 15; price to book < 1.5; current ratio > 1.5
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pe < 15; pb < 1.5; curr ratio > 1.5
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Classic Graham value with safety
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Graham
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EPS growth > 7%; P/E < 15; debt/equity < 0.5
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eps gr > 7; pe < 15; d/e < 0.5
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Graham's defensive investor criteria
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Graham
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dividend yield > 3%; P/E < 20; price to book < 2
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div yld > 3; pe < 20; pb < 2
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Income-focused value investing
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Graham
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working capital > market cap; P/E < 12
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wc > mk cap; pe < 12
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Net-net stocks (extreme value)
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Graham
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ROE > 20%; EV/EBITDA < 8; EV>0
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roe > 20; ev/ebitda < 8
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Magic Formula: High returns, low valuation
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Greenblatt
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ROIC > 15%; P/E < 12; free cash flow yield > 8%
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roic > 15; pe < 12; fcf yld > 8
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Capital efficiency with deep value
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Greenblatt
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operating margin > 15%; EV/sales < 3; ROE > 15%
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op margin > 15; ev/s < 3; roe > 15
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Profitable businesses at bargain prices
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Greenblatt
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gross margin > 50%; ROE > 20%; debt/equity < 0.3
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gp margin > 50; roe > 20; d/e < 0.3
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Wonderful businesses with pricing power
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Munger
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R&D/revenue > 3%; operating margin > 20%; revenue growth > 8%
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r&d/rev > 3; op margin > 20; rev gr > 8
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Innovation-driven quality companies
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Munger
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ROE > 25%; revenue growth TTM > 10%; free cash flow margin > 15%
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roe > 25; rev gr ttm > 10; fcf margin > 15
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Exceptional businesses with compounding potential
|
Munger
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price to book < 1; debt/equity < 0.1; P/E < 12;
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pb < 1; d/e < 0.1; pe < 12;
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Deep value with minimal debt
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Schloss
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price to tangible book < 0.8; current ratio > 2;
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p/tangible book < 0.8; curr ratio > 2
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Asset-based value investing
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Schloss
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working capital/share > price; debt/assets < 0.2
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wc/share > price; d/a < 0.2
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Buying below liquidation value
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Schloss
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P/E < 10; dividend yield > 4%; revenue growth < -5%
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pe < 10; div yld > 4; rev growth < -5
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Contrarian value in out-of-favor stocks
|
Dreman
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price 52-week low < 1.2; P/E < 15; ROE > 8%
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52w low < 1.2; pe < 15; roe > 8
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Beaten-down stocks with value
|
Dreman
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revenue growth > 15%; R&D/revenue > 5%; operating margin increasing
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rev gr > 15; r&d/rev > 5; op margin gr > 0
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Superior growth companies with R&D focus
|
Fisher
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ROE > 20%; revenue growth TTM > 12%; gross margin > 45%
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roe > 20; rev gr ttm > 12; gp margin > 45
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High-quality growth with superior margins
|
Fisher
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EPS growth > 20%; revenue/employee > 200K; operating margin > 20%
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eps gr > 20; rev/employee > 200k; op margin > 20
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Efficient, profitable growth companies
|
Fisher
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price to book < 1.2; free cash flow yield > 8%; debt/equity < 0.5;
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pb < 1.2; fcf yld > 8; d/e < 0.5;
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Margin of safety with strong cash flow
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Klarman
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EV/EBITDA < 6; current ratio > 1.5; price/tangible book < 1.5;
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ev/ebitda < 6; curr ratio > 1.5; p/tb < 1.5;
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Conservative value with safety margin
|
Klarman
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gross margin > 40%; operating margin > 20%
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gp margin > 40%; op margin > 20%
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Strong pricing power and efficiency
|
Quality
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R&D/revenue > 5%; ROE > 12%
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r&d/rev > 0.05; roe > 0.12
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Innovative and profitable firms
|
Quality
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revenue > 1B; free cash flow/share > 2
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rev > 1b; fcf/share > 2
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Large companies with solid cash flow
|
Quality
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free cash flow growth > 15%; operating cash flow growth > 10%
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fcf gr > 15; op cf gr > 10
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Cash-rich, growing companies
|
Quality
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debt/assets < 0.5; interest coverage > 4
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d/a < 0.5; int coverage > 4
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Financially stable firms
|
Quality
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price/sales < 2; operating cash flow/share > 5
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ps < 2; op cf/share > 5
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Cheap on sales, strong cash gen
|
Value
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ROIC > 10%; price/OCF < 15
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roic > 10; p/ocf < 15
|
Capital-efficient and cheap
|
Quality
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inventory turnover > 5; DSO < 45
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inv turnover > 5; dso < 45
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Operationally efficient firms
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Efficiency
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current ratio > 1.5; quick ratio > 1
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curr ratio > 1.5; quick ratio > 1
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Strong liquidity position
|
Liquidity
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SMA-20 > SMA-50; RSI < 30
|
sma20 > sma50; rsi < 30
|
Possible technical reversal
|
Technical
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MACD crosses above Signal
|
macd > macd signal
|
MACD bullish crossover
|
Technical
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Price > SMA-200; RSI between 40 and 70
|
price > sma200; rsi > 40; rsi < 70
|
Momentum in trend
|
Technical
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Price < BB Lower; RSI < 30
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price < bb lower; rsi < 30
|
Oversold with Bollinger band support
|
Technical
|
EV/sales < 3; net margin > 15%
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ev/s < 3; net inc % > 15
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High margin and undervalued
|
Value + Quality
|
capex/share > 1; free cash flow/share > 3
|
capex/share > 1; fcf/share > 3
|
Growth investment + cash generation
|
Growth
|
beta < 1; volume > average volume
|
beta < 1; volm > avg vol
|
Low volatility, high liquidity
|
Risk-Aware
|
free cash flow yield (TTM) > 4%; EV/FCF < 15
|
fcf yld ttm > 4; ev/fcf < 15
|
Cheap on trailing cash flow
|
Value
|
EPS growth > P/E ratio
|
eps gr > pe
|
Strong growth relative to valuation
|
GARP
|
dividend/share growth > 5%; payout ratio < 60%
|
div/share gr > 5; payout ratio < 60
|
Growing, sustainable dividends
|
Income
|
net income growth > debt growth; ROE > 15%
|
net inc gr > debt gr; roe > 15
|
Profit-led growth with discipline
|
Quality
|