AI Blocks › Handle money and investing
Undervalued stock screener
Paste a table of listed companies. Get the cheap ones that pass five safety tests, with the failed test beside every cut.
Undervalued stock screener is a free AI skill for the job "Handle money and investing". Give the instructions to an AI assistant that supports the required files and tools, then review its output.
Free · No account · Made by AI Blocks · Level: advanced
What it does
Cheap stocks are cheap for a reason, and most of the reasons are good ones. A low price against earnings catches companies in trouble, with heavy debt, a loss last year or a dying business. The screen below keeps the first cut simple and then removes the ones that look unsafe. This skill follows the method in The Intelligent Investor for the investor who will put in real work. First cut: a low price against the last twelve months of earnings. Then five tests: current assets at least one and a half times current liabilities and debt no more than net current assets, no loss in the last five years, some dividend now, earnings above those of a few years back, and price no more than 120% of tangible assets. There is no size floor, since small companies bought as a group can be safe enough. It also warns that…
You give it
- A table of companies with price and earnings for the last twelve months
- Current assets, current liabilities, long-term debt and tangible book value
- Dividend now, and profit for each of the last five years
- The multiple you want for the first cut, if you have one
You get
- A short list that passes all five tests
- The failed test beside every company cut
- The share of the table that survived at each cut
- A list of what to study next for each survivor
Use it when
- You have a table of listed companies and time to study the survivors.
- You want to find cheap stocks without buying the ones in trouble.
- You want a repeatable first cut that you can rerun each year.
How to use it
- Start a chat with the skill. Open it if you added it to your AI, or copy it and paste it in.
- Paste the table, or send a file if your AI takes files. Check the column names with it.
- Choose a first-cut multiple, or let it pick one from the middle of the table and note why.
- Take the survivors to "Asset floor estimator".