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clark-kent | 1 year ago

We only look at when the stock is objectively "undervalued". I'm not saying the system will tell you that a stock like Palantir is undervalued because it has a bright future. No. This system only tells when a stock is objectively undervalued. There are a few ways to know this.

Here some examples:

- Market cap is less than book value.

- Market cap is less than free cash flow x 8

There are other ways, but these are some examples. Being undervalued doesn't mean its a good company, the trick is knowing why its undervalued and if that valuation is justified.

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qeternity|1 year ago

> the trick is knowing why its undervalued and if that valuation is justified.

If it’s justified, then it’s not undervalued.

Everything you described above is also just wrong and you should please stop encouraging uneducated retail investors to believe anything that fits these heuristics is “objectively undervalued”.

m3kw9|1 year ago

If any of these metrics were arbitrage, it would mean the fastest execution wins and the gap wouldnt last long. These metrics almost never work

danielmarkbruce|1 year ago

> This system only tells when a stock is objectively undervalued. There are a few ways to know this.

> - Market cap is less than free cash flow x 8

Lol. "Objectively".

mnky9800n|1 year ago

If that were true you wouldn’t need an ai to tell you.