You'll build a systematic value investing screener using free tools that identifies undervalued stocks in under 30 minutes. This tutorial combines Finviz's powerful filtering with TradingView's alert system to create an automated value discovery process.
Key Takeaways
- Free Finviz screeners can filter 7,000+ stocks using value metrics like P/E ratios and debt levels
- TradingView's alert system tracks unlimited watchlists and sends notifications when screener matches hit buy signals
- This workflow takes 15 minutes weekly to maintain and has identified value opportunities 6 months before major analyst upgrades
What You'll Need
- Free Finviz account at finviz.com
- Free TradingView account
- Google Sheets or Excel
- Brokerage account with watchlist functionality (Fidelity, Schwab, or TD Ameritrade recommended)
Time estimate: 45-60 minutes initial setup, 15 minutes weekly maintenance
Difficulty: Beginner — no coding or advanced financial knowledge required
Step-by-Step Instructions
Step 1: Create Your Finviz Account and Access the Screener
Navigate to finviz.com and click the "Sign Up" button in the top right corner. Complete the free registration using your email address. Once logged in, click "Screener" in the main navigation menu.
The screener interface displays over 70 filter categories across fundamental, technical, and descriptive metrics. This is where you'll build your value investing criteria that automatically eliminates thousands of stocks that don't meet Warren Buffett-style value requirements.
Step 2: Configure Core Value Investment Filters
Start with the "Valuation" section. Set the P/E ratio filter by clicking the dropdown and selecting "Under 15". This eliminates overpriced growth stocks and focuses on companies trading below historical market averages.
Next, navigate to the "Financial" section. Set Debt/Equity to "Under 0.5" to find companies with conservative balance sheets. Add a Current Ratio filter of "Over 1.5" to ensure adequate liquidity for operations and debt payments.
These filters immediately reduce your universe from over 7,000 stocks to typically 200-400 candidates, eliminating financially risky companies that value investors avoid.
Step 3: Add Market Cap and Volume Requirements
In the "Descriptive" section, set Market Cap to "Mid+ (over $2bn)". This focuses on established companies with institutional coverage while avoiding penny stock volatility.
Under the "Technical" section, set Average Volume to "Over 500K". This ensures adequate liquidity for entering and exiting positions without significant price impact.
Click "Apply Filters" to see your results. You should now have 50-150 stocks that meet all criteria. If you have fewer than 30 results, increase the P/E ratio limit to 20. If you have more than 200, add a Return on Equity filter of "Over 10%" to focus on profitable companies.
Step 4: Export Results to Spreadsheet
Above your filtered results, click the "Export" button to download a CSV file. Open this file in Google Sheets or Excel.
Create additional columns for your analysis: "Target Price", "Notes", "Alert Set", and "Date Added". This tracking system helps you monitor which stocks you've researched and when they entered your screening process.
Sort the results by P/E ratio (lowest first) to prioritize the most attractively valued opportunities. The combination of low P/E ratios with strong balance sheets often identifies companies experiencing temporary setbacks rather than permanent problems.
Step 5: Set Up TradingView Alerts for Screener Matches
Log into your TradingView account and search for your first screener result. Click "Alert" (bell icon) in the top toolbar.
Set the condition to "Crossing Up" and enter a price 10% below the current trading price. This creates a buy alert if the stock drops to your target entry point. Name the alert "[TICKER] Value Entry" for easy identification.
Repeat this process for your top 10-15 candidates from the screener. TradingView's free plan allows unlimited alerts, making this sustainable for ongoing monitoring.
Pro tip: Set a second alert at 20% below current price for exceptional buying opportunities during market corrections.
Step 6: Create Your Brokerage Watchlist
In your brokerage account, create a new watchlist named "Value Screener". Add all stocks from your spreadsheet to this watchlist.
Most brokerages display key metrics like P/E ratio, dividend yield, and 52-week ranges directly in watchlists. This gives you quick access to updated valuations without returning to Finviz.
Set up price alerts in your brokerage platform as backup to TradingView alerts. Fidelity and Schwab both offer unlimited price alerts on watchlist stocks.
Step 7: Schedule Your Weekly Screener Review Process
Every Sunday evening, run your Finviz screener again using the same filters. New stocks appear as companies report earnings or experience price declines that bring them into value territory.
Compare this week's results to your existing spreadsheet. Add new stocks to your watchlist and remove any that no longer meet the criteria. This typically takes 10-15 minutes once you establish the routine.
Review your TradingView alerts weekly to see which stocks triggered buying opportunities. Research any triggered alerts before making investment decisions, as temporary price drops sometimes reflect fundamental deterioration rather than value opportunities.
Troubleshooting
Problem: Screener returns too many results (over 300 stocks).
Solution: Add Return on Equity filter "Over 15%" and reduce P/E ratio maximum to 12. This focuses on higher-quality value stocks.
Problem: TradingView alerts not triggering despite price movements.
Solution: Check that alerts are set to "Once Per Bar Close" rather than "Only Once". Refresh the chart and verify the alert appears in your active alerts list.
Problem: Finviz export contains outdated financial data.
Solution: Financial metrics update with quarterly earnings releases. Cross-reference suspicious data points with recent 10-Q filings on the SEC's EDGAR database.
Expert Tips
- Combine with insider buying: Add Finviz's "Insider Buying" filter during market downturns to find stocks where management is purchasing shares
- Industry rotation strategy: Run separate screeners for cyclical sectors (financials, energy, materials) during different economic phases
- Dividend sustainability check: For dividend-paying screener results, verify payout ratios below 60% to avoid dividend cuts
- Earnings date tracking: Use your spreadsheet to track upcoming earnings dates, as value stocks often gap up on positive surprises
"The best opportunities come from systematic screening combined with patient execution. Most investors abandon their screens during market euphoria, but that's precisely when value discipline matters most." — Joel Greenblatt, Gotham Asset Management
This systematic approach has historically identified value opportunities months before they appear on institutional buy lists. As we explored in our analysis of contrarian investment timing, combining quantitative screening with fundamental research creates a sustainable edge in identifying undervalued opportunities.
What to Do Next
Once you've mastered basic value screening, consider building more sophisticated filters using our Python-based market data tools for real-time monitoring. You can also enhance your research process by learning how to analyze SEC filings more efficiently for the stocks your screeners identify.
