Quality Value: Financials
Financials are a sector that confounds absolute P/E screens. Banks, insurers, and asset managers trade on capital efficiency and book value as much as earnings — and within the sector, valuation dispersion is wide. Some regional banks trade at half the multiple of their large-cap money-center peers, often for businesses doing similar things.
This screen surfaces financial-sector names trading at a meaningful discount to their peers, after passing a quality and profitability filter. Read the methodology on sector-relative analysis to understand how the comparison is built.
Criteria
- Sector: GICS Financials sector only (banks, insurance, asset managers)
- Sector-relative P/E discount: P/E at least 15% below the financials sector median
- Quality score: Tessera Rating ≥ 65 / 100
- Profitability: Positive ROE and net interest margin (where applicable)
Underlying methodology
See the current top 10 stocks for this screen
Refreshed every Monday with end-of-week data. Free account — no credit card required.
Sign up freeFrequently asked questions
Why is P/E meaningful for financials?
Financials trade on a different valuation logic than non-financials — book value and ROE matter more, but P/E still works as a relative comparison within the sector. The screen surfaces banks, insurers, and asset managers trading meaningfully below their sector peers on earnings multiples.
Are regional banks included?
Yes, if they meet the quality and liquidity thresholds. Regional banks often exhibit wider valuation dispersion than the large-cap money-center banks, which can surface real opportunities. The quality filter excludes banks with deteriorating credit metrics or thin capital ratios.
Why GICS sector classification specifically?
GICS Financials is a clean grouping that excludes real estate (which has its own sector) and includes banks, insurance, capital markets, consumer finance, and diversified financials. This matches how institutional investors think about financial-sector allocation.