Is this a simple way to find Undervalued stocks?

Discussion in 'Ask any question!' started by Filippo Christo, Feb 19, 2020.

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Simply Wall Street Discounted Cash Flows method for Fair Value, is reliable?

Poll closed Mar 20, 2020.
  1. Yes

    1 vote(s)
    50.0%
  2. No

    1 vote(s)
    50.0%
  1. Filippo Christo

    Filippo Christo New Member

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    I use the Simply Wall Street use the Discounted Cash Flows method for Fair Value calculation.
    Are they reliable?
     
  2. anotherdevilsadvocate

    anotherdevilsadvocate Well-Known Member

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    Some would say yes, some would say no. And they'd be right, I think it depends on what you believe.
    If you think "only accounting matters", then you'd rely on DCF for fair value.
    I think stocks get a value put on them that is a reflection of what society wants, e.g. Netflix has a high value because society has become/wants to become "entertainment on demand", and Netflix is leading that wave.
     

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