Undervalued Stocks to Buy

58 Deeply Discounted Opportunities.

Curated by Anish Das

Refreshed Jun 8, 2026

Three valuation gates at once: P/E below 10, P/B below 1.5, and EV/EBITDA below 8 — with positive ROE to exclude broken businesses. Tighter than the broad value screen; every stock passes all three tests. Sorted by P/E ascending so the deepest discounts surface first.

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Undervalued Stocks

Avg P/E Ratio

6.6

Avg P/B Ratio

1.0

Avg EV/EBITDA

5.5

Earnings Discount

P/E ≤ 10

Asset Discount

P/B ≤ 1.5

Enterprise Discount

EV/EBITDA ≤ 8

Viable Operations

Positive ROE

These stocks trade at a discount to the S&P 500's current 31.4x P/E (as of 2026-06-05). S&P 500 Valuation Dashboard →

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Ticker	Company	P/E	P/B	EV/EBITDA	Earnings Yield	ROE
RIGL	Rigel Pharmaceuticals, Inc.	1.5	1.4	4.4	65.1%	185.9%
TYG	Tortoise Energy Infrastructure Corporation	2.2	0.8	4.9	45.3%	44.9%
JCAP	Jefferson Capital, Inc. Common Stock	2.6	1.0	8.0	38.5%	43.8%
WLKP	Westlake Chemical Partners LP	2.7	1.0	2.6	36.6%	36.6%
DEC	Diversified Energy Company PLC	3.0	1.0	1.8	33.1%	46.9%
CALM	Cal-Maine Foods, Inc.	3.0	1.4	1.9	33%	55.9%
GAIN	Gladstone Investment Corporation	3.2	0.9	5.2	31.1%	31.7%
CIVI	Civitas Resources, Inc.	3.2	0.4	1.9	30.9%	13.1%
HRTG	Heritage Insurance Holdings, Inc.	3.5	1.4	0.8	28.5%	49.1%
CHTR	Charter Communications, Inc.	3.6	0.9	5.1	27.4%	24.8%
GEF	Greif, Inc.	4.2	1.0	7.8	23.6%	31.7%
CMCSA	Comcast Corporation	4.4	0.9	5.1	22.6%	21.6%
REPX	Riley Exploration Permian, Inc.	4.6	1.2	4.2	21.9%	28.1%
CET	Central Securities Corp.	5.2	0.9	5.3	19.3%	19.9%
TASK	TaskUs, Inc.	5.2	0.9	3.0	19.2%	18.6%
GAINI	Gladstone Investment Corporation	5.3	1.5	7.0	18.7%	31.7%
TY	Tri-Continental Corporation	5.6	0.9	5.7	17.9%	17.6%
SM	SM Energy Company	5.7	0.8	2.8	17.5%	14.3%
GAM	General American Investors Company, Inc.	5.8	0.9	6.0	17.2%	16.5%
LEG	Leggett & Platt, Incorporated	5.9	1.4	6.6	16.9%	27.5%
LNC	Lincoln National Corporation	5.9	0.6	2.3	16.8%	12.3%
UHS	Universal Health Services, Inc.	6.3	1.3	5.5	15.9%	21%
FSCO	FS Credit Opportunities Corp.	6.3	0.7	5.6	15.8%	10.5%
EIX	Edison International	6.3	1.5	7.2	15.8%	24.6%
KSS	Kohl's Corporation	6.5	0.4	6.8	15.3%	6.9%
DFH	Dream Finders Homes, Inc.	6.8	0.9	5.7	14.7%	14.4%
AGNC	AGNC Investment Corp.	6.9	0.8	2.1	14.5%	15.1%
GPK	Graphic Packaging Holding Company	7.1	0.9	6.0	14%	14%
GBX	The Greenbrier Companies, Inc.	7.4	0.9	6.5	13.5%	12.3%
AMWD	American Woodmark Corporation	7.4	0.8	5.9	13.5%	10.9%

RIGL

Rigel Pharmaceuticals, Inc.

1.5P/E

P/B1.4

EV/EBITDA4.4

Earnings Yield65.1%

ROE185.9%

TYG

Tortoise Energy Infrastructure Corporation

2.2P/E

P/B0.8

EV/EBITDA4.9

Earnings Yield45.3%

ROE44.9%

JCAP

Jefferson Capital, Inc. Common Stock

2.6P/E

P/B1.0

EV/EBITDA8.0

Earnings Yield38.5%

ROE43.8%

WLKP

Westlake Chemical Partners LP

2.7P/E

P/B1.0

EV/EBITDA2.6

Earnings Yield36.6%

ROE36.6%

DEC

Diversified Energy Company PLC

3.0P/E

P/B1.0

EV/EBITDA1.8

Earnings Yield33.1%

ROE46.9%

CALM

Cal-Maine Foods, Inc.

3.0P/E

P/B1.4

EV/EBITDA1.9

Earnings Yield33%

ROE55.9%

GAIN

Gladstone Investment Corporation

3.2P/E

P/B0.9

EV/EBITDA5.2

Earnings Yield31.1%

ROE31.7%

CIVI

Civitas Resources, Inc.

3.2P/E

P/B0.4

EV/EBITDA1.9

Earnings Yield30.9%

ROE13.1%

HRTG

Heritage Insurance Holdings, Inc.

3.5P/E

P/B1.4

EV/EBITDA0.8

Earnings Yield28.5%

ROE49.1%

CHTR

Charter Communications, Inc.

3.6P/E

P/B0.9

EV/EBITDA5.1

Earnings Yield27.4%

ROE24.8%

GEF

Greif, Inc.

4.2P/E

P/B1.0

EV/EBITDA7.8

Earnings Yield23.6%

ROE31.7%

CMCSA

Comcast Corporation

4.4P/E

P/B0.9

EV/EBITDA5.1

Earnings Yield22.6%

ROE21.6%

REPX

Riley Exploration Permian, Inc.

4.6P/E

P/B1.2

EV/EBITDA4.2

Earnings Yield21.9%

ROE28.1%

CET

Central Securities Corp.

5.2P/E

P/B0.9

EV/EBITDA5.3

Earnings Yield19.3%

ROE19.9%

TASK

TaskUs, Inc.

5.2P/E

P/B0.9

EV/EBITDA3.0

Earnings Yield19.2%

ROE18.6%

GAINI

Gladstone Investment Corporation

5.3P/E

P/B1.5

EV/EBITDA7.0

Earnings Yield18.7%

ROE31.7%

Tri-Continental Corporation

5.6P/E

P/B0.9

EV/EBITDA5.7

Earnings Yield17.9%

ROE17.6%

SM Energy Company

5.7P/E

P/B0.8

EV/EBITDA2.8

Earnings Yield17.5%

ROE14.3%

GAM

General American Investors Company, Inc.

5.8P/E

P/B0.9

EV/EBITDA6.0

Earnings Yield17.2%

ROE16.5%

LEG

Leggett & Platt, Incorporated

5.9P/E

P/B1.4

EV/EBITDA6.6

Earnings Yield16.9%

ROE27.5%

LNC

Lincoln National Corporation

5.9P/E

P/B0.6

EV/EBITDA2.3

Earnings Yield16.8%

ROE12.3%

UHS

Universal Health Services, Inc.

6.3P/E

P/B1.3

EV/EBITDA5.5

Earnings Yield15.9%

ROE21%

FSCO

FS Credit Opportunities Corp.

6.3P/E

P/B0.7

EV/EBITDA5.6

Earnings Yield15.8%

ROE10.5%

EIX

Edison International

6.3P/E

P/B1.5

EV/EBITDA7.2

Earnings Yield15.8%

ROE24.6%

KSS

Kohl's Corporation

6.5P/E

P/B0.4

EV/EBITDA6.8

Earnings Yield15.3%

ROE6.9%

DFH

Dream Finders Homes, Inc.

6.8P/E

P/B0.9

EV/EBITDA5.7

Earnings Yield14.7%

ROE14.4%

AGNC

AGNC Investment Corp.

6.9P/E

P/B0.8

EV/EBITDA2.1

Earnings Yield14.5%

ROE15.1%

GPK

Graphic Packaging Holding Company

7.1P/E

P/B0.9

EV/EBITDA6.0

Earnings Yield14%

ROE14%

GBX

The Greenbrier Companies, Inc.

7.4P/E

P/B0.9

EV/EBITDA6.5

Earnings Yield13.5%

ROE12.3%

AMWD

American Woodmark Corporation

7.4P/E

P/B0.8

EV/EBITDA5.9

Earnings Yield13.5%

ROE10.9%

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How We Build This List

P/E Ratio: 0.1 to 10Sub-10 P/E is well below market average — market is pricing in problems or over-pessimism. The 0.1 floor excludes loss-makers where P/E is meaningless.
Price-to-Book ≤ 1.5Modest premium to net assets — strongest signal for financials and industrials where book value is a real economic anchor. Tighter than the value screen's P/B ≤ 2.
EV/EBITDA ≤ 8Capital-structure-neutral valuation check. Strips out debt differences so a leveraged-cheap stock can't game the screen. This is the third gate that separates it from the broader value screen.
ROE ≥ 5%Lower than the value screen's 8% because deep discounts often come with temporarily compressed returns. Keeps the screen in "depressed but functional" territory, not "broken."
Market Cap ≥ $500MDeep value clusters in smaller names, so the floor is lower than value-stocks' $1B. Below $500M, liquidity and data quality make ratios unreliable.
Excludes ADRs, Preferreds, and Non-Common SecuritiesADRs carry currency noise; preferreds and baby bonds show artificially low ratios. US common equity only — data quality must be airtight for a multi-metric value claim.

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What Makes a Stock a Undervalued Stocks List constituent?

Undervalued stocks are companies trading below their intrinsic worth. This screen filters for stocks with low valuation multiples, solid profitability, and manageable debt, providing a clear margin of safety.

UNDERVALUED

Valuation Filter

Discount Multiples

PROFITS

Earnings Gate

ROE >= 10% Minimum

LEVERAGE

Debt Control

Manageable Debt Structure

Identify Low Valuation Multiples

Select companies with low P/E, P/B, or P/S ratios relative to the market and their industry averages.

Verify Earnings Quality

Require Return on Equity (ROE) above 10% to ensure the cheap valuation is not due to a complete loss of profits.

Audit Debt Risk

Confirm the interest coverage ratio is strong to ensure the company won't face credit distress.

Performance Dynamics: When Does This Strategy Outperform?

Strategy performance behaves differently based on market conditions. Let's analyze when this strategy outperforms and when it lags:

When Undervalued Leads

✓ Market cycles driven by rising interest rates and inflation.
✓ Economic expansions when cyclical industrial and resource stocks rebound.
✓ Bear market recoveries.

When Undervalued Trails

✗ Growth-led bull markets when mega-cap tech stocks expand multiples.
✗ Speculative bubble phases when assets are bid up without earnings support.
✗ Deflationary periods when low-risk growth is scarce.

How to Use the Screener Results Table

To build a resilient portfolio, do not buy stocks on simple statistics alone. Use the key columns in our table to audit the durability, safety, and returns of each stock:

P/E Ratio Multiplier

Price-to-Earnings. Low ratios imply the stock is cheap relative to current profits.

Return on Equity (ROE) Percentage

Measures capital efficiency, ensuring the company generates profits from net assets.

P/B Ratio Multiplier

Price-to-Book. Gauges asset value. Low P/B indicates valuation discount.

Debt to Equity Multiplier

Gauges leverage. Low ratios imply lower financial risk.

Risk Factors & Warning Signs to Track

Value Traps vs. Real Discounts

Verify that revenue and net margins are stable or growing. If a cheap stock has declining sales, its low multiple is justified, indicating a value trap.

What are Undervalued Stocks?

Identifies profitable companies trading at low valuation multiples. It enforces a strict triple-gate filter: P/E under 15, P/B under 2, and positive ROE.

P/E Ratio ≤ 10
Price-to-Book (P/B) ≤ 1.5
EV/EBITDA ≤ 8
Return on Equity (ROE) ≥ 5%

Why Invest in Undervalued Stocks?

Margin of Safety

Provides a margin of safety against market corrections

Multiple Expansion

Anchors investments to tangible book and asset value

Triple Verification

Ensures the cheap price is backed by positive returns

Contrarian Advantage

Captures broad sector value before mean reversion

Frequently Asked Questions

What makes a stock undervalued?

A stock is undervalued when its market price is lower than its intrinsic value, often due to temporary bad news, sector out-of-favor status, or general market selloffs.

How is intrinsic value calculated?

Using methods like Discounted Cash Flow (DCF) analysis, dividend discount models, or analyzing net asset valuations (book value).

What is the margin of safety?

The discount between the market price and the intrinsic value of a stock, which protects your capital if your valuation assumptions are slightly off.

Can a stock stay undervalued forever?

Yes, this is known as a value trap. Without a catalyst (like activist pressure, a buyback program, or an industry turnaround), cheap stocks can stay cheap indefinitely.

What is the difference between cheap and undervalued?

A stock is cheap if it has low multiples. It is undervalued if its business quality and future cash flows are strong but are being priced at a discount.

Which valuation multiples are best?

P/E for stable companies, EV/EBITDA for capital-intensive firms, P/B for banks and financial institutions, and Price-to-Sales (P/S) for growth names.

Do undervalued stocks pay dividends?

Many do. High dividend yields can serve as a catalyst, attracting value investors and supporting the share price during downturns.

Should I sell an undervalued stock when it hits fair value?

Yes, value investors typically liquidate or trim positions once the discount evaporates and the stock trades at its intrinsic value.

Stock ScreenerLive ScreenerModify this screen's filters, add columns, or build entirely from scratch using 200+ metrics.Open in screener

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ValuationDCF & peersCheck a stock's intrinsic value via DCF, analyst consensus, and relative peer comps.Calculate value

Undervalued Stocks to Buy

How We Build This List

What Makes a Stock a Undervalued Stocks List constituent?

Identify Low Valuation Multiples

Verify Earnings Quality

Audit Debt Risk

Performance Dynamics: When Does This Strategy Outperform?

When Undervalued Leads

When Undervalued Trails

How to Use the Screener Results Table

Risk Factors & Warning Signs to Track

Value Traps vs. Real Discounts

What are Undervalued Stocks?

Why Invest in Undervalued Stocks?

Margin of Safety

Multiple Expansion

Triple Verification

Contrarian Advantage

Frequently Asked Questions

Related Screens

Best Value Stocks to Buy

Piotroski F-Score Stocks: Financially Improving Value Companies

GARP Stocks: Growth at a Reasonable Price

Warren Buffett Stocks: Quality Companies with Durable Moats

Low Debt Stocks: Quality Companies with Minimal Leverage

High Quality Stocks

Undervalued Stocks to Buy🏷️

How We Build This List

What Makes a Stock a Undervalued Stocks List constituent?

Identify Low Valuation Multiples

Verify Earnings Quality

Audit Debt Risk

Performance Dynamics: When Does This Strategy Outperform?

When Undervalued Leads

When Undervalued Trails

How to Use the Screener Results Table

Risk Factors & Warning Signs to Track

Value Traps vs. Real Discounts

What are Undervalued Stocks?

Why Invest in Undervalued Stocks?

Margin of Safety

Multiple Expansion

Triple Verification

Contrarian Advantage

Frequently Asked Questions

Related Screens

Best Value Stocks to Buy

Piotroski F-Score Stocks: Financially Improving Value Companies

GARP Stocks: Growth at a Reasonable Price

Warren Buffett Stocks: Quality Companies with Durable Moats

Low Debt Stocks: Quality Companies with Minimal Leverage

High Quality Stocks

Undervalued Stocks to Buy