Methodology
Deep value investing looks for securities trading at extreme discounts to intrinsic value — the classic cigar butt approach from Benjamin Graham's earliest writings. Our filter requires a P/E below 10, a price-to-book below 1, and debt-to-equity below 0.5. Companies matching this screen are often in temporarily unloved industries, out-of-favor cyclicals, or small-cap names that institutional investors have stopped covering. The strategy demands patience and a diversified basket — many of these stocks are cheap for a reason, but the survivors historically produce outsized long-term returns.
Screener Statistics
- Companies matching: 141
- Average P/E: 4.7
- Average ROE: 15.2%
- Average dividend yield: 6.2%
- Average market cap: $1.2B
- Top sectors: Financial Services (61), Technology (18), Industrials (13)
Top Matches
- Entergy Louisiana, LLC COLLATERAL TR MT (ELC) — Utilities · P/E 4.6
- TAL Education Group (TAL) — Consumer Defensive · P/E 6.2
- Vipshop Holdings Limited (VIPS) — Consumer Cyclical · P/E 4.0
- Bank OZK (OZK) — Financial Services · P/E 8.5
- White Mountains Insurance Group, Ltd. (WTM) — Financial Services · P/E 5.0
- Athene Holding Ltd. 7.250% Fixe (ATHS) — Financial Services · P/E 6.9
- Versant Media Group, Inc. Class A (VSNT) — Communication Services · P/E 5.8
- Associated Banc-Corp (ASBA) — Financial Services · P/E 8.5
- F&G Annuities & Life, Inc. (FGN) — Financial Services · P/E 7.8
- Millrose Properties, Inc. (MRP) — Real Estate · P/E 8.8
- Telephone and Data Systems, Inc. (TDS) — Communication Services · P/E 8.3
- Seaboard Corporation (SEB) — Industrials · P/E 5.8
- Assured Guaranty Ltd. (AGO) — Financial Services · P/E 9.5
- Danaos Corporation (DAC) — Industrials · P/E 5.3
- F&G Annuities & Life, Inc. (FG) — Financial Services · P/E 7.1
- People Incorporated (PPLI) — Communication Services · P/E 8.0
- Brighthouse Financial, Inc. (BHF) — Financial Services · P/E 3.5
- Merchants Bancorp (MBIN) — Financial Services · P/E 9.9
- Aspen Insurance Holdings Limited (AHL-PD) — Financial Services · P/E 8.6
- Pelagos Insurance Capital Limit (PLGO) — Financial Services · P/E 6.3
- Lakefront Biotherapeutics N.V. (LKFT) — Healthcare · P/E 3.8
- Ziff Davis, Inc. (ZD) — Communication Services · P/E 3.1
- Tri-Continental Corporation (TY) — Financial Services · P/E 5.6
- ARMOUR Residential REIT, Inc. (ARR) — Real Estate · P/E 3.4
- Central Puerto S.A. (CEPU) — Utilities · P/E 5.6
- Central Securities Corp. (CET) — Financial Services · P/E 7.6
- Aspen Insurance Holdings Limited (AHL-PE) — Financial Services · P/E 8.6
- General American Investors Company, Inc. (GAM) — Financial Services · P/E 4.2
- Vistance Networks, Inc. (VISN) — Technology · P/E 7.3
- Global Ship Lease, Inc. (GSL) — Industrials · P/E 4.0
- Weibo Corporation (WB) — Communication Services · P/E 4.5
- TriMas Corporation (TRS) — Consumer Cyclical · P/E 1.6
- Forestar Group Inc. (FOR) — Real Estate · P/E 7.8
- G-III Apparel Group, Ltd. (GIII) — Consumer Cyclical · P/E 9.6
- FS Credit Opportunities Corp. (FSCO) — Financial Services · P/E 6.6
- Tortoise Energy Infrastructure Corporation (TYG) — Financial Services · P/E 5.4
- ASA Gold and Precious Metals Limited (ASA) — Financial Services · P/E 1.0
- China Yuchai International Limited (CYD) — Consumer Cyclical · P/E 8.3
- Dream Finders Homes, Inc. (DFH) — Consumer Cyclical · P/E 6.6
- Yalla Group Limited (YALA) — Technology · P/E 6.2
- Apollo Commercial Real Estate Finance, Inc. (ARI) — Real Estate · P/E 8.3
- UP Fintech Holding Ltd. Sponsored ADR Class A (TIGR) — Financial Services · P/E 6.5
- Fidus Investment Corporation (FDUS) — Financial Services · P/E 9.1
- Customers Bancorp, Inc 5.375% S (CUBB) — Financial Services · P/E 2.6
- Criteo S.A. (CRTO) — Communication Services · P/E 7.2
- FinVolution Group (FINV) — Financial Services · P/E 2.5
- Donegal Group Inc. (DGICA) — Financial Services · P/E 9.4
- DoubleDown Interactive Co., Ltd. (DDI) — Technology · P/E 5.4
- Third Coast Bancshares, Inc. (TCBX) — Financial Services · P/E 9.8
- Hello Group Inc. (MOMO) — Communication Services · P/E 4.3
Frequently Asked Questions
What is deep value?
Deep value targets stocks trading below book value (P/B below 1) with P/E under 10 — the most discounted names in the market. Graham called these cigar butts: one last puff of value before the story ends.
Is deep value the same as contrarian investing?
They overlap but are not identical. Deep value is a quantitative screen; contrarian investing is a psychological stance — buying what others are selling. Many deep value names are also contrarian, but not all.
How do I avoid value traps?
Screen for low debt (below 0.5 D/E), positive free cash flow, and avoid concentrating in one sector. Diversify across 20-30 deep value names to let the portfolio math work in your favor.