Most Undervalued Stocks by Value Score (2026)

This ranking asks how the price compares with what the business earns, owns and grows. The Value Score measures how the market price compares with three models' yardsticks for what a company reports.

Three valuation lenses converge. Graham's seven criteria for the defensive investor, from chapter 14 of The Intelligent Investor, ask for a long clean record and a modest price: P/E ≤ 15 on three-year average earnings, and P/B ≤ 1.5 or P/E × P/B ≤ 22.5. Lynch first puts each stock in one of his six categories and values it the way that category deserves — for growers, P/E (trailing twelve months, earnings from continuing operations) ÷ (5-year EPS growth % + dividend yield %) < 1; score 10 at PEGY ≤ 0.5, 8 at ≤ 0.67, 6 at ≤ 1, 3 at ≤ 2, else 0; for cyclicals, no P/E-to-growth test at all. Greenblatt's Magic Formula ranks every eligible stock by earnings yield and by return on capital and adds the two ranks — a dual filter for "cheap and good."

For a general company the Value axis weights Graham 45%, Lynch 25% and Greenblatt 30%; sector profiles shift those weights. A model that does not apply — Greenblatt for bank, insurer, asset manager, holding company, utility, reit; Lynch for bank, insurer — is left out of the axis, never counted as zero.

A high Value score means the price passes most of these tests. It is not a signal to act — a cheap stock with a collapsing quality score may be cheap for good reason, and our backtest found no statistically significant excess return from the scores.