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by clark-kent
543 days ago
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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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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”.