This list shows European stocks that match a Peter Lynch-style strategy by combining growth, valuation, profitability, and balance sheet quality filters. Stocks are sorted by their ChartMill fundamental rating, highlighting the most fundamentally solid stocks first.
| Symbol | Company | Sector | Price | Market Cap | PE | PEG | EPS 3Y Growth | ROE | FA Rating |
|---|---|---|---|---|---|---|---|---|---|
| VH2.DE | FRIEDRICH VORWERK GROUP SE | Energy | 79.7 | 1.53B | 18.41 | 0.80 | 71.53% | 30.26% | 7 / 10 |
| HEIJM.AS | KONINKLIJKE HEIJMANS N.V | Industrials | 86.95 | 2.40B | 18.38 | 0.92 | 22.70% | 23.75% | 6 / 10 |
| MTX.DE | MTU AERO ENGINES AG | Industrials | 329.2 | 18.04B | 18.49 | 2.74 | 26.09% | 23.55% | 6 / 10 |
| REY.MI | REPLY SPA | Information Technology | 91.35 | 3.28B | 13.57 | 1.87 | 9.49% | 16.86% | 6 / 10 |
| PRX.AS | PROSUS NV | Consumer Discretionary | 42.74 | 100.97B | 8.62 | 0.31 | -3.39% | 24.24% | 6 / 10 |
| SL.MI | SANLORENZO SPA/AMEGLIA | Consumer Discretionary | 33.58 | 1.19B | 7.53 | N/A | 12.50% | 30.49% | 6 / 10 |
| KTN.DE | KONTRON AG | Information Technology | 21.12 | 1.31B | 9.56 | N/A | -15.40% | 19.03% | 5 / 10 |
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.
Peter Lynch became well known for focusing on understandable businesses with strong growth, but without overpaying for that growth. A Peter Lynch-style stock screen aims to find companies that combine healthy earnings expansion with reasonable valuation, good profitability, and manageable balance sheet risk.
Investors looking for Peter Lynch stocks often focus on businesses with consistent earnings growth, solid returns on equity, and a PEG ratio that suggests growth is not excessively priced in. Balance sheet quality also matters, which is why lower debt levels and a healthy current ratio can help improve the overall quality of the screen.
These are the rules used to build this stock list.
We start with European-listed stocks and apply a Peter Lynch-style stock screener focused on quality growth at a reasonable price. We require a minimum level of liquidity through average volume and market capitalization filters. From there, we focus on companies with healthy five-year EPS growth, a low PEG ratio, strong return on equity, limited debt, and enough short-term financial strength to maintain a current ratio of at least 1.
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.
Current Ratio of at Least 1
A current ratio of at least 1 helps ensure that the company has enough short-term assets to cover its short-term liabilities.
Return on Equity above 15%
A high return on equity helps identify companies that use shareholder capital efficiently and profitably.
Debt to Equity below 0.6
We limit debt levels to focus on companies with healthier balance sheets and lower financial risk.
EPS Growth 5Y between 15% and 30%
We look for companies with strong but still realistic long-term earnings growth, which fits a Peter Lynch-style focus on sustainable growth.
PEG Ratio 5Y below 1
A PEG ratio below 1 suggests that the stock may offer attractive growth relative to its valuation.
Peter Lynch stocks are inspired by an investing style that looks for understandable companies with strong earnings growth, reasonable valuations, and healthy business fundamentals. The PEG ratio is often used as one starting point.
The PEG ratio compares valuation with earnings growth, helping investors avoid paying too much for growth. A low PEG can be attractive, but it works best when paired with profitability, debt, and quality checks.
We start with European-listed stocks and apply a Peter Lynch-style stock screener focused on quality growth at a reasonable price. We require a minimum level of liquidity through average volume and market capitalization filters. From there, we focus on companies with healthy five-year EPS growth, a low PEG ratio, strong return on equity, limited debt, and enough short-term financial strength to maintain a current ratio of at least 1.
Investors looking for Peter Lynch stocks often focus on businesses with consistent earnings growth, solid returns on equity, and a PEG ratio that suggests growth is not excessively priced in. Balance sheet quality also matters, which is why lower debt levels and a healthy current ratio can help improve the overall quality of the screen.