Top 25 Most Undervalued Stocks Right Now

Last updated: May 23, 2026

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

#1QFINQfin Holdings, Inc.94

Qfin Holdings, Inc. tops the undervalued ranking at 94, combining the most compelling valuation metrics with strong fundamental quality in the Financial Services sector.

#2ADBEAdobe Inc.93

Adobe Inc. scores 93 — attractively priced across multiple valuation metrics while maintaining solid profitability and balance sheet strength.

#3GSLGlobal Ship Lease, Inc.92

Global Ship Lease, Inc. (Industrials) earns 92, with particularly strong earnings yield and P/FCF suggesting the market is underpricing its cash generation.

#4TCOMTrip.com Group Limited91

Trip.com Group Limited (Consumer Cyclical) scores 91 on the undervaluation composite — cheap fundamentals backed by quality.

#5STLAStellantis N.V.90

Stellantis N.V. (Consumer Cyclical) scores 90 on the undervaluation composite — cheap fundamentals backed by quality.

Full Value Ranking: Top 25 Stocks

#	Stock	Sector	Value	UQS
1	QFINQfin Holdings, Inc.	Financial Services	94	65
2	ADBEAdobe Inc.	Technology	93	76
3	GSLGlobal Ship Lease, Inc.	Industrials	92	60
4	TCOMTrip.com Group Limited	Consumer Cyclical	91	70
5	STLAStellantis N.V.	Consumer Cyclical	90	59
6	CHAChagee Holdings Limited American Depositary Shares	Consumer Defensive	90	61
7	KSPIJoint Stock Company Kaspi.kz	Technology	90	70
8	OXLCGOxford Lane Capital Corp. 7.95% Notes due 2032	Financial Services	89	55
9	NMMNavios Maritime Partners L.P.	Industrials	89	56
10	OAK-PAOaktree Capital Group, LLC 6.625% PFD UT A	Financial Services	88	69
11	UVEUniversal Insurance Holdings, Inc.	Financial Services	87	59
12	PRGPROG Holdings, Inc.	Industrials	87	60
13	HLFHerbalife Nutrition Ltd.	Consumer Defensive	85	54
14	EPAMEPAM Systems, Inc.	Technology	85	51
15	KDKyndryl Holdings, Inc.	Technology	84	50
16	ARDTArdent Health Partners, LLC	Healthcare	83	55
17	KOFCoca-Cola FEMSA, S.A.B. de C.V.	Consumer Defensive	83	55
18	GGenpact Limited	Technology	82	52
19	BBARBanco BBVA Argentina S.A.	Financial Services	82	51
20	CIBGrupo Cibest S.A.	Financial Services	82	48
21	GIB-A.TOCGI Inc.	Technology	81	51
22	PICSPicS N.V.	Technology	79	52
23	ADTADT Inc.	Industrials	79	56
24	JXNJackson Financial Inc.	Financial Services	79	52
25	SMFGSumitomo Mitsui Financial Group, Inc.	Financial Services	79	49

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Frequently 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.