Using Microsoft Excel or custom stock screener tools, you can create your own filters and criteria. Maybe you think book value per share is too common a metric and not focused enough for you. So you come up with a new calculation based on assets, liabilities and income growth over time.
You might even call this the Price/Book/Growth ratio, something that doesn’t exist anywhere else. Basic stock screeners won’t allow you to find the results. But building your own in Excel or using a screener’s existing features, you can make a list of stocks completely unique to your investment theory.
As an example, the stock screener at Equities Lab can take a wide range of inputs and run them through any formulas you choose.
Advanced and expert traders can do very well with this type of setup. However, beginners may find themselves in over their heads with numbers spinning around that doesn’t make much sense. If you are new to investing or the markets, start with what you understand and build up to more complex strategies over time.