Value Stock Analyzer

Current Price:
P/E Ratio:
Return on Assets (ROA):
Recommendation:
💡 AI Investment Insights
AI investment insights will appear here after analyzing a stock.

Recently Analyzed

How to Use This Tool

This stock analyzer helps you quickly understand two important metrics for any publicly traded company:

  • P/E Ratio (Price-to-Earnings Ratio): This indicates how much investors are willing to pay per dollar of a company's earnings. A lower P/E can sometimes suggest a stock is undervalued.
  • ROA (Return on Assets): This measures how efficiently a company generates profit from its assets. A higher ROA indicates better asset utilization and profitability.

Simply enter the stock ticker symbol (e.g., MSFT for Microsoft, GOOGL for Alphabet) and click "Analyze" to get the latest data.

Recommendation Matrix

P/E Ratio ROA Recommendation
≤ 15 (Good) > 20% (Strong) ✅ STRONG BUY
≤ 15 (Good) 5-20% (Fair) ✅ BUY
≤ 15 (Good) 0-5% (Weak) ⚠️ OK TO BUY BUT PRECAUTION
15-25 (Fair) > 20% (Strong) ⚠️ OK TO BUY BUT PRECAUTION
15-25 (Fair) 5-20% (Fair) ⏸️ HOLD
15-25 (Fair) 0-5% (Weak) ⏸️ HOLD
< 0 or ≥ 25 (Poor) Any (except < 0%) ⏸️ HOLD
Any < 0% (Negative) ❌ AVOID

Why These Metrics Matter for Value Investors

Value investing focuses on identifying stocks that appear to be trading for less than their intrinsic or book value. The P/E ratio is a foundational metric for this, helping to gauge if a stock is cheap or expensive relative to its earnings. A consistently high ROA can signal a company with a strong competitive advantage and efficient management, making it a more attractive long-term investment.

Together, these metrics provide a quick snapshot of a stock's valuation and operational efficiency — key considerations for informed investment decisions.