Hidden Gem Stocks: Undervalued Small-Cap Screener

Hidden gems are small-cap stocks trading at a meaningful discount to their Benjamin Graham intrinsic value, with healthy balance sheets and light analyst coverage. StoQuant refreshes this list daily.

Screening filters

• P/E ratio < 15
• P/B ratio < 1.5
• PEG ratio < 1.0
• Debt-to-equity < 0.5
• Current ratio > 1.5
• Market cap $250M – $10B
• Analyst coverage < 8
• Margin of safety ≥ 30% below intrinsic value

Intrinsic value formula

V = EPS × (8.5 + 2g), where g is expected annual earnings growth. A stock is flagged as a gem when its market price is at least 30% below V.

Why small-cap, low-coverage

Efficient-market frictions are weakest where institutional coverage is thin. Small-caps with fewer than eight analysts are more likely to be mispriced — that is where Graham-style value investing still works.