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Guide To Fundamental Analysis Using A Stock Screener

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Fundamental analysis of stocks is one of the most crucial steps during stock marketing. It is used to determine the financial health of the company. Every investor planning for long-term investment is recommended to perform a detailed fundamental analysis before making any final decision. When done manually, fundamental analysis requires intensive research which is very time-consuming and can be a bit overwhelming for a beginner. This is where the stock screeners become indispensable. By having the best technical stock screener in India with fundamental indicators, you can save your time while performing in-depth fundamental analysis using technical indicators, in minutes.

Screening stocks on the basis of fundamental metrics is one of the best ways to enhance the quality of your scans and adhere to your technical trading strategy. With fundamentals, investors not only look at the performance of a company’s stocks but also get to learn how that company is performing individually. Fundamental stock screening using the right technical stock screener in India provides crucial information about the direction in which a company is moving. It helps in technical analysis using fundamental indicators. In short, it helps in predicting the future price and growth of the stocks.

In this article, we will discuss how to perform fundamental analysis using a technical stock screener in India.

Fundamental analysis using a stock screener

Fundamental analysis includes evaluating factors like annual revenue, cash flow, market capitalization, dividend and so on. These metrics provide detailed insights into the financial and business health of the organization and also help in predicting its position in future.

Below are the metrics that you need to consider while using a stock screener for performing fundamental analysis :

Market capitalization

Market capitalization is the total market value of a given company on the basis of all of its stocks. Generally, the high market cap companies are considered to be more reliable and more stable, whereas the companies with small-cap are considered to be volatile.


Revenue is the total income of the company before expenses. When the expenses are deducted from the revenue, it results in profits.

PEG ratio

PEG Ratio is a metric used to determine whether or not a company is valued fairly. It is calculated by dividing the P/E Ratio by Annual income per share growth. When the ratio is 1, the company is considered to be fairly priced. However, if the ratio is less than 1, the company is considered to be undervalued. You can easily calculate the PEG ratio as most of the stock screeners include the P/E ratio as their screening metrics.


It is simply the total amount of cash a company holds. This amount is used as a safety capital to clear off the debts or fund a new product line or anything related. A company with a good amount of cash in hand is ideal for investing in.


Debt is the amount that a company needs to clear. It is an important metric for fundamental investors because it affects the current and future financial health of the company.

% Institutions

It is the percentage of a given company’s shares that are held by institutions like banks and other large funds. Institutional investors generally invest in risk-free companies. However, their amount is less liquid as they need to move large quantities of shares very often.

Shares short

This metric represents the total number of a company’s shares that have been shorted by the traders. If the number of shorted shares is higher, it means that the investors believe that the stock price of the company will go down in the upcoming future.

Dividend yield

Investors should prefer a positive dividend yield, even if it is small. Dividends are a great indication that the company is financially stable and is performing well enough to pay its shareholders. It is very important to analyse the payout ratio of the dividend sharing stocks to make sure that the company will continue to pay its dividend in the near future.

Profit margin TTM (Trailing twelve months )

The profit margin is another great indicator of the company’s performance. When analysing this metric, it is important to pay attention to the TTM. It offers information regarding the past performance of the company. In short, it allows you to learn how the company has performed over the last one year. Also, when you look at the selected companies, make sure to compare their profit margins to the industries in which they’re operating.

Investing in the stock market is not a “get rich in less time” scheme. It takes time to gain profits and earn better returns. However, if you make mindful investments after performing deep research and analysis, you can succeed in less time. Stock screeners are great tools for fundamental analysis. They save your time and present you with the most accurate screening results. All you need to do is use the right fundamental indicators on a  technical stock screener for Indian stocks and you’re good to go. Do your homework and be a smart investor. We hope this guide helps you!


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