Example: Fundamental AI Screener (Value-Based)

Value investing is about finding companies that are trading for less than what they’re really worth.

Instead of chasing momentum, value investors focus on strong fundamentals — profits, balance sheets, and management quality.

AI can help by quickly filtering companies that meet typical value criteria like low P/E ratios, high ROE, and steady profit growth.

What Value Means in Simple Terms

• A low Price-to-Earnings (P/E) ratio compared to peers can signal undervaluation.
• A healthy Return on Equity (ROE) shows the company uses shareholder money efficiently.
• Consistent sales and profit growth indicates long-term stability. Together, these form the base of a value screener.

The Prompt (How to Ask AI)

Here’s a sample value screener prompt:

“Find Nifty 500 companies with P/E below 15, ROE above 12%, and profit growth positive for the last 3 years. Return results in a table with columns: Stock, Price, P/E, ROE, 3Y Profit Growth.”

This combines valuation, efficiency, and growth into one prompt.

Sample Output (Mock Example for Learning)

This table gives you a shortlist of potentially undervalued stocks worth deeper study.

How to Refine the Prompt

AI doesn’t always get it perfect in one go. You can iterate:

• Step 1: “Show me FMCG stocks with P/E < 20 and ROE > 12%.”
  
• Step 2: “Now add 5-year sales growth.”
  
• Step 3: “Remove companies with high debt (debt-to-equity > 1).”
  

Each step sharpens the list without making it overly strict.

How to Backtest the Screener

Ask AI to test the rules on past data:

“Backtest this screener on Nifty 500 data from 2015–2020. Compare average returns with Nifty 500 index.”

This shows whether your filters held up across cycles — bull, bear, and sideways.

Final Takeaway

Fundamental screeners help you focus on value stocks — those trading at fair or cheap prices with strong financial health.

AI makes the process faster by combining P/E, ROE, and profit growth into simple prompts and tables.

The smart way to use it: build a clean shortlist, refine step by step, and always cross-check with annual reports and SEBI filings.

Remember, a screener highlights candidates. The decision to invest still needs your judgment, patience, and discipline.