How to Instantly Know If a Stock Is Fairly Priced on Screener: My Favorite Chrome Plugin for Valuation
Quick tip for serious investors: This one Screener tool has saved me hours of confusion when trying to figure out if a stock is overpriced or has margin of safety.
Here’s the video link – I recommend watching it for the full walkthrough:
Below is a summary of the discussion for quick reference.
Why This Tool Matters
One of the most important questions in investing is: Is the current stock price reasonable?
Whether you're new or experienced, you've probably done tons of research, loved a business, but got stuck on: "Is the valuation justified?" or "Am I overpaying?"
And this becomes even more crucial in microcap and small-cap investing, where volatility is high and margin of safety matters even more.
That's why I use a Google Chrome plugin called Smart Analyzer — it's a powerful valuation overlay for Screener.in that gives you:
A quick snapshot of valuation metrics and ratios
One-year forward price targets based on historical performance
A built-in Reverse DCF calculator to see what growth is priced in
It's not perfect, but it’s an amazing sanity-check tool to validate your research.
How to Get Started
Go to the Chrome Web Store
Search "Smart Analyzer Screener"
Install the extension (it integrates automatically with Screener.in)
Once it's live, you’ll see a new “Smart Analyzer” button on every stock page inside Screener.
Real-Life Examples from the Video
Here’s a sneak peek of how I used the tool to analyze 5 completely different businesses:
1. Asian Paints (Large Cap, Steady Compounder)
Current PE: 57 vs historical average ~60
Based on best-case margin and PE, there’s some upside but limited margin of safety
Reverse DCF shows it needs 20.6% CAGR to deliver just 10% annual return
2. Solar Industries (High Growth, High Valuation)
Trading at 125 PE vs historical 45 PE
Best-case upside largely priced in unless earnings double soon
Reverse DCF implies 30% annual growth needed to deliver 15% return
3. Aarti Industries (Cyclical Business)
PE appears high due to temporarily compressed margins
Smart Analyzer struggles with cyclicals due to variability
Useful only if you know the business deeply
4. Vodafone Idea (Distressed Company)
Tool throws errors or gives misleading results due to negative margins and high debt
Not recommended for use on turnarounds or companies with huge liabilities
5. HDFC Bank (Banking/Financials)
Tool doesn’t work at all for banks or NBFCs
Skip using Smart Analyzer here
6. Blue Pebble (Microcap)
Recently listed microcap with strong commercial interior design positioning
At 16 PE, has upside potential if they maintain 30% growth
Reverse DCF shows you’d need 27% CAGR over 5 years for a 25% return
Key Features I Love:
✅ Common-size analysis of income statement trends
✅ Visual PE band analysis and forward price estimates
✅ Reverse DCF to calculate implied growth rate for your desired return
✅ Editable assumptions (margins, PE, discount rate, terminal growth)
What It’s Not Good For:
❌ Cyclical companies (like chemicals, commodities) — large variation in estimates
❌ Distressed businesses with negative cash flows or huge debts
❌ Banks and NBFCs — valuation models don’t apply
Think of it as a calculator, not a crystal ball. Use it to validate—not replace—your fundamental research.
Final Thoughts
Smart Analyzer is one of my go-to sanity check tools. Especially for microcaps, where valuations can swing wildly, this helps me:
Ground my expectations
Avoid impulsive buys at frothy levels
Justify conviction on overlooked stocks
It’s fast, intuitive, and works right inside Screener.in.
Watch the Full Video Breakdown
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Recommended Tool:
Before you even get to valuation, use our 20-Point Microcap Stock Scorecard to screen and analyse microcap stocks effectively.
Watch the Scorecard Explainer Video.
If you found this helpful, reply and let me know how you use valuation tools—or what you'd like me to break down next!
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