Cheap stocks are shares trading at low valuations relative to fair value. The simplest interpretation — low price-to-earnings — misses too much, because raw cheapness alone doesn't tell you whether the discount is justified. A useful cheap-stocks screen needs a real fair-value model, not just a single multiple, to surface stocks that are genuinely undervalued versus stocks that are cheap for structural reasons.
This screener uses GuruFocus's Valuation Rank, a 1–10 composite that combines three independent signals: absolute valuation (price vs business-value estimate), historical valuation (current multiples vs the company's own 10-year history across P/E, P/S, P/B, and P/OCF), and industry-relative valuation (how the company prices against industry peers). It returns only stocks ranked 9 or 10 — the top-decile most undervalued of the global universe — and filters out micro-caps and preferred shares to keep the list to recognizable, liquid names.
Note: this screen is pure valuation — it doesn't apply a quality floor. Some names may be cheap for genuine business reasons. If you want only quality-filtered undervalued stocks, see the related Best Value Stocks screener which pairs the same valuation signal with a GF Score ≥ 80 quality requirement.
A $10,000 investment compounded to $65,935 — nearly 1.7× the S&P 500's return of +334.9%.
Every stock in the list passes the Valuation Rank top-decile filter — a 1-10 composite that scores cheapness across three independent dimensions. Higher rank means more undervalued.
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