I’m building my first stock screener with EODHD and thinking of filtering out anything with a P/E ratio above 40. Does that actually make sense, or should I also be looking at other metrics?
P/E > 40 isn’t always a red flag — especially for fast-growing tech companies. Try checking PEG or forward P/E too.
I usually go with P/E < 20, but I always combine it with debt/equity and ROE. One metric alone doesn’t tell the whole story.
If you’re using the API, I’d recommend filtering with multiple metrics — PE, EV/EBITDA, and maybe 5Y earnings growth. More reliable that way.
Solid starting point, but I’d also add a volume filter so you don’t get stuck with illiquid stocks.