[sooheon]

> use a financial model like Discounted Cash Flow for finding companies that are "objectively" severely undervalued -> buy them -> wait X years until they reach their "fair price" that you calculated at the start -> sell for a profit

The math for discounting future cash flows may be objective, but every investor will come up with a different estimate of future cash flows. People in general don't "know too much to severely undervalue companies", because this implies future risks and growth are knowable. People may know how to read balance sheets, but very few are any good at forecasting risks and growth.

What's missing from your flow chart is "produce a quantifiable thesis for growth/risk that gives you a current valuation, judge the precision of this valuation and the uncertainty of the price/value gap closing, make your bet".