Top 25 Most Undervalued Stocks Right Now
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Undervalued stocks trade below what their fundamentals suggest they're worth. But cheapness alone is a trap — the lowest P/E stocks in the market are disproportionately companies with deteriorating fundamentals whose prices are low for a reason. What separates genuine undervaluation from a value trap is the quality of the underlying business. The stocks on this page combine the most attractive valuations in our universe with proven fundamental strength, creating the kind of margin of safety that legendary value investors from Benjamin Graham to Warren Buffett have built their fortunes on.
This ranking uses a composite score that blends Valuation (60%) with Quality (20%) and Risk (20%). Pure valuation rankings surface too many companies that are cheap because they deserve to be. By requiring quality and safety as filters, this list identifies stocks where the market has genuinely mispriced the fundamentals — not where deteriorating businesses have been correctly marked down. The four valuation metrics (earnings yield, P/FCF, PEG, EV/EBITDA vs sector) each capture different dimensions of cheapness, and a stock must look attractive across most of them to rank highly.
How to Find Undervalued Stocks
Finding genuinely undervalued stocks requires looking at multiple valuation metrics simultaneously. A stock can look cheap on P/E but expensive on P/FCF (if it's consuming cash despite reporting profits), or cheap on earnings yield but fairly priced when adjusted for growth (PEG ratio). The UQS Valuation pillar captures all four dimensions, and this ranking adds Quality and Risk filters to separate real opportunities from value traps.
Learn more about the metrics that drive this ranking: earnings yield, P/FCF, PEG ratio, and EV/EBITDA. For the value investing philosophy behind this approach, see our guides on intrinsic value and margin of safety.
How the Value Score Is Calculated
Stocks are ranked by a composite: Valuation Score × 60% + Quality Score × 20% + Risk Score × 20%. This weights undervaluation heavily while filtering out value traps through fundamental quality and balance sheet safety requirements. All four valuation metrics — earnings yield, price-to-free-cash-flow, PEG ratio, and EV/EBITDA vs sector median — must be non-null for the valuation score to be meaningful. Market cap minimum of $1 billion ensures liquidity.
How to Read This Value Ranking
The 'Score' column shows the composite undervaluation score (0–100). Higher means a better combination of cheapness and fundamental quality. A stock with a very high valuation score but low quality score will rank lower than one with moderate valuation but excellent quality — because the first is more likely to be a value trap. Cross-reference with individual pillar scores on each stock's detail page to understand where the value case is strongest.
Most Undervalued Stocks: Who Made the List and Why
Universal Insurance Holdings, Inc. tops the undervalued ranking at 95, combining the most compelling valuation metrics with strong fundamental quality in the Financial Services sector.
Nutex Health, Inc. scores 94 — attractively priced across multiple valuation metrics while maintaining solid profitability and balance sheet strength.
PDD Holdings Inc. (Consumer Cyclical) earns 94, with particularly strong earnings yield and P/FCF suggesting the market is underpricing its cash generation.
FS Credit Opportunities Corp. (Financial Services) scores 93 on the undervaluation composite — cheap fundamentals backed by quality.
Bausch Health Companies Inc. (Healthcare) scores 87 on the undervaluation composite — cheap fundamentals backed by quality.
Full Value Ranking: Top 25 Stocks
| # | Stock | Sector | Value | UQS |
|---|---|---|---|---|
| 1 | UVE | Financial Services | 95 | 65 |
| 2 | NUTX | Healthcare | 94 | 70 |
| 3 | PDD | Consumer Cyclical | 94 | 75 |
| 4 | FSCO | Financial Services | 93 | 62 |
| 5 | BHC | Healthcare | 87 | 48 |
| 6 | FINV | Financial Services | 87 | 50 |
| 7 | APA | Energy | 86 | 50 |
| 8 | CRTO | Communication Services | 86 | 53 |
| 9 | GSL | Industrials | 86 | 45 |
| 10 | CTSH | Technology | 86 | 52 |
| 11 | FG | Financial Services | 85 | 58 |
| 12 | TK | Energy | 85 | 48 |
| 13 | SLDE | Financial Services | 85 | 47 |
| 14 | AXS | Financial Services | 85 | 47 |
| 15 | LNC | Financial Services | 82 | 44 |
| 16 | COLL | Healthcare | 81 | 56 |
| 17 | CTBB | Communication Services | 80 | 37 |
| 18 | CTDD | Communication Services | 80 | 38 |
| 19 | NICE | Technology | 80 | 50 |
| 20 | BTG | Basic Materials | 80 | 40 |
| 21 | ELPC | Utilities | 80 | 52 |
| 22 | BCS | Financial Services | 79 | 53 |
| 23 | ADT | Industrials | 78 | 57 |
| 24 | FNF | Financial Services | 78 | 55 |
| 25 | DXC | Technology | 78 | 42 |
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Browse All StocksFrequently Asked Questions
How do you find undervalued stocks?
Screen for low valuation metrics (high earnings yield, low P/FCF, low PEG, EV/EBITDA below sector median) then verify the fundamentals are sound. The most common mistake is buying a stock just because it's cheap — you need to confirm the business is profitable, generating cash, and financially stable. This ranking automates both steps: the UQS Valuation pillar identifies cheapness across four metrics, and the Quality and Risk filters ensure the cheapness isn't warranted by deteriorating fundamentals.
What makes a stock undervalued?
A stock is undervalued when its market price is below what its fundamentals justify — it's generating more earnings, cash flow, or growth per dollar of market price than the market is giving it credit for. Common causes: temporary sector-wide selloffs, market overreaction to short-term news, investor neglect of small or unfashionable companies, or rotation out of certain sectors. The key is distinguishing temporary mispricing (opportunity) from permanent value destruction (trap).
Are undervalued stocks risky?
Not necessarily. Academic research shows that value stocks (stocks trading at low prices relative to fundamentals) have historically delivered higher risk-adjusted returns than expensive stocks — the 'value premium.' However, individual cheap stocks can be risky if they're cheap due to genuine business deterioration. This ranking mitigates that risk by requiring high Quality and Risk scores alongside high Valuation scores, filtering out companies where cheapness reflects real problems.