Screen the sector that compounds on software margins and reinvested cash flow.
The technology sector spans software, semiconductors, hardware and IT services — businesses that turn intellectual property into high-margin, recurring revenue. It is where the market pays the richest multiples, so screening on quality and cash generation, not just growth, is what separates durable compounders from expensive stories.
Illustrative — not investment advice.
| Ticker | Company | Sub-industry | Quality Score |
|---|---|---|---|
| AAPL | Apple | Consumer hardware & services | 7.5/10 |
| MSFT | Microsoft | Software & cloud infrastructure | 7.5/10 |
| NVDA | NVIDIA | Semiconductors & accelerated computing | 8.1/10 |
| AVGO | Broadcom | Semiconductors & infrastructure software | 7.5/10 |
| ORCL | Oracle | Enterprise software & cloud | 5.9/10 |
| CRM | Salesforce | Customer-relationship software | 7.1/10 |
| ADBE | Adobe | Creative & document software | 8.1/10 |
| AMD | Advanced Micro Devices | Semiconductors | 6.0/10 |
| CSCO | Cisco Systems | Networking hardware & software | 6.4/10 |
| ACN | Accenture | IT consulting & services | 7.5/10 |
| INTC | Intel | Semiconductors & foundry | 2.8/10 |
| TXN | Texas Instruments | Analog semiconductors | 5.5/10 |
Software and chip leaders are valued on durable top-line growth; a growth floor screens out mature, slowing names dressed up as compounders.
High gross margins signal pricing power and a software-like cost structure — the engine behind tech’s premium valuations.
Free-cash-flow yield keeps you honest on price: it turns a rich P/E into cash you’d actually own, filtering out stories that never convert growth to cash.
Return on invested capital shows whether reinvested R&D and acquisitions actually earn their keep — the mark of a real compounder.
Capital is flooding into accelerated computing, data centres and the chips that power them — reshaping which parts of the sector earn the best returns on capital.
After a decade of “growth at any cost”, the market now rewards profitable growth: durable gross margins and real free cash flow, not bookings alone.
Chip demand still swings with the cycle. Screening on balance-sheet strength and cash flow helps you tell structural winners from cyclical peaks.
Each one opens the screener with these filters already on the bar — change any of them, or save the screen under your own name.
Income first — a dividend-yield floor, with valuation and free-cash-flow filters to screen out yield traps.
Durable, capital-efficient businesses: high returns on capital and fat margins, still growing.
Smaller companies compounding revenue faster than the market has noticed, and paying for themselves in cash.
Every card above opens the screener with the sector filter and its own bounds already on the bar. Change any of them — nothing here is fixed.
Stack valuation, profitability, growth, dividend and financial-health filters. Each one is a range with presets, the table answers as you move a bound, and every filter says how many companies it excluded for want of a value.
Open any survivor for the four intrinsic-value models, then save it to a watchlist with a margin-of-safety target so each name carries an undervalued / fair / rich signal.
Rather than chase a fixed list, screen the sector on the metrics that drive tech returns: durable revenue growth, high gross margins, strong free-cash-flow yield and high return on invested capital. That surfaces quality compounders instead of expensive stories.
Open the company’s Intrinsic Value tab: Lemma Analysis prices it four ways at once — Advanced DCF, Ben Graham, Simple DCF and the Dividend Discount Model — and draws all four on one axis against today’s price, with every assumption editable and a bear/base/bull case behind each one. There is deliberately no blended figure; which methods fit the company is stated instead, with the reason beside any that does not. Most of the sector pays no dividend, so the Dividend Discount Model usually sits the question out and the two cash-flow builds carry the answer. Intrinsic Value is free for 3 companies a day with no account needed, and unlimited on Ultimate, which every new account gets for seven days without a card.
There is no one answer for a sector, and a page that gave you one would be stating a figure it cannot keep true. What the Fair Value tab does instead is ask it per company: seven multiples — P/E, Yield, P/FCF, P/OCF, P/S, EV/EBITDA and P/B — each measured against that company’s own history, so today’s reading is a percentile of what the market has actually paid for it rather than a comparison with a sector average. A rich multiple is normal in this sector, which is exactly why a comparison with the market tells you nothing — what matters is whether this company is dear against its own past. Most of the sector pays no dividend, so that lens is set aside and the earnings and cash-flow ones carry the reading. Fair Value is free for 3 companies a day with no account needed, and unlimited on Ultimate, which every new account gets for seven days without a card.
Yes — the screener is part of Ultimate. Every new account gets Ultimate for seven days with no credit card, which is enough to build a technology screen, sort it and keep it; a screen you save stays on your account.
Gross margin and free-cash-flow yield are the tell-tales: they separate genuinely capital-efficient software and semiconductor businesses from richly priced names that never convert growth into cash.
The screener is part of Ultimate, and every new account gets it for seven days: create an account, confirm your email, and the trial starts without a card. What you have built stays yours either way — a screen is an address, so the link you saved keeps working the day you subscribe.