This list shows Canadian stocks that meet strict valuation and quality criteria. Stocks are selected based on low valuation multiples and strong financial fundamentals, helping investors identify potentially undervalued opportunities. Stocks are sorted by market capitalization, highlighting the largest undervalued companies first. Larger companies tend to offer more stability and liquidity, making them attractive for a wide range of investors.
| Symbol | Company | Sector | Price | Market Cap | FA Rating | FPE | % Chg | 1M % | 3M % | Analysts |
|---|---|---|---|---|---|---|---|---|---|---|
| MU.CA | Micron CDR | Information Technology | 16.32 | 18.37B | 8 / 10 | 0.24 | 8.87% | -81.74% | -76.80% | 83.70 |
| FVI.CA | FORTUNA MINING CORP | Materials | 14.48 | 4.42B | 7 / 10 | 6.57 | 4.70% | -14.22% | 10.62% | 77.50 |
| ADBE.CA | Adobe Inc | Information Technology | 9.32 | 3.80B | 7 / 10 | 0.25 | -0.64% | -11.91% | -27.98% | 75.22 |
| PYPL.CA | Paypal CDR CAD Hedged | Financials | 3.215 | 2.96B | 7 / 10 | 0.43 | -1.23% | -4.88% | -23.63% | 65.88 |
| ENGH.CA | ENGHOUSE SYSTEMS LTD | Information Technology | 16.52 | 900.34M | 7 / 10 | 9.94 | -0.66% | -7.71% | -17.97% | 46.67 |
| IFOS.CA | ITAFOS INC | Materials | 3.71 | 693.07M | 6 / 10 | 7.55 | 1.09% | 20.85% | 23.67% | 84.00 |
| SBI.CA | SERABI GOLD PLC | Materials | 5.48 | 415.00M | 8 / 10 | 2.92 | 7.45% | -13.02% | -7.74% | 86.00 |
| MMY.CA | MONUMENT MINING LTD | Materials | 1 | 346.10M | 7 / 10 | 5.00 | -0.99% | -8.26% | -18.03% | 84.44 |
Note: This table shows a subset of the stocks matching the screen criteria. The full list of stocks can be viewed in the Stock Screener tool.
Stocks can appear undervalued for many reasons, including temporary market sentiment, cyclicality, or short-term earnings pressure. The goal is to identify companies where the market price does not fully reflect underlying fundamentals. By combining valuation metrics with quality indicators, this screen focuses on stocks that are not only cheap, but also financially sound.
Investors often start with low valuation ratios such as P/E or price-to-book, but these alone can be misleading. This screen combines multiple valuation filters with profitability and financial health checks to identify companies that are both attractively priced and fundamentally strong.
These are the rules used to build this stock list.
We start with Canadian-listed stocks and apply a combination of valuation filters (such as forward P/E, price-to-book, and free cash flow yield) together with quality metrics (including profitability, ROIC, and financial health). This helps identify potentially undervalued companies while reducing the risk of value traps.
Average Volume above 50K
We require a minimum average daily volume of 50,000 shares to ensure sufficient liquidity for investors.
Market Cap above $300M
We exclude very small companies to avoid illiquid and highly speculative stocks.
Forward P/E below 15
A forward P/E below 15 indicates the stock is trading at a relatively low valuation compared to expected earnings.
Price-to-Book below 2
A low price-to-book ratio suggests the stock may be undervalued relative to its net assets.
Free Cash Flow Yield above 5%
A high free cash flow yield indicates strong cash generation relative to market value, a key signal of potential undervaluation.
ROIC above 10%
We require a minimum return on invested capital to ensure the company generates solid returns on its capital.
Strong Financial Health
Companies must have a ChartMill Health Rating of at least 5 to ensure solid balance sheet strength.
Positive Earnings
Companies must be profitable to avoid distressed businesses that appear cheap for a reason.
Undervalued stocks are companies that may be trading below their intrinsic value based on metrics such as earnings, book value, cash flow, and balance-sheet strength. This Canadian screen focuses on stocks that look cheap while still showing signs of quality.
A stock can look cheap for good reason, so valuation alone is not enough. That is why this Canadian screen combines low valuation ratios with profitability, ROIC, and financial-health checks to help reduce the risk of buying weak businesses.
We start with Canadian-listed stocks and apply a combination of valuation filters (such as forward P/E, price-to-book, and free cash flow yield) together with quality metrics (including profitability, ROIC, and financial health). This helps identify potentially undervalued companies while reducing the risk of value traps.
Investors often start with low valuation ratios such as P/E or price-to-book, but these alone can be misleading. This screen combines multiple valuation filters with profitability and financial health checks to identify companies that are both attractively priced and fundamentally strong.