Quality Value: Tech Stocks
Technology is a high-multiple sector. Profitable tech stocks rarely look "cheap" by absolute P/E standards — they don't have to, because the sector's growth and margin profile justifies premium valuations. But within tech, dispersion is wide: some names trade at 50× and others at 18×, often for businesses doing similar things.
This screen surfaces the bottom of that range — profitable, cash-generative tech companies trading at a meaningful discount to their tech-sector peers. Pair it with the methodology on sector-relative analysis to see how the comparison is constructed.
Criteria
- Sector: GICS Information Technology sector only
- Sector-relative P/E discount: P/E at least 15% below the tech sector median
- Quality score: Tessera Rating ≥ 70 / 100
- Profitability: Positive ROIC and operating margin
Underlying methodology
See the current top 10 stocks for this screen
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Why focus on tech specifically?
Technology is a high-multiple sector where absolute P/E screening fails — virtually no profitable tech stock will look cheap on absolute terms. Sector-relative ranking surfaces tech names that are cheap relative to their peers, which is the only meaningful 'value' question to ask in a high-multiple sector.
Are speculative or unprofitable tech stocks included?
No. The quality filter requires positive ROIC and operating margin, so pre-profit growth stocks and speculative names are excluded. This screen targets profitable, cash-generative tech businesses trading below their peer median.
How is 'tech' defined?
GICS Information Technology sector classification. This excludes communication services (Meta, Alphabet, Netflix) and consumer discretionary names sometimes thought of as tech (Amazon, Tesla).