Move the sliders. Watch the fair value change. Nothing is hidden.
What a company's future cash is worth today.
Cash the business makes each year, years 1 to 10.
Six checks add up to 100 points. Under 45 is Sell. 45 to 69 is Hold. 70 and up is Buy.
Good to know before you trust a number.
Companies investing hard, like Amazon, can look cheap or expensive. We flag it.
Our checks don't fit them well. We say so on the card.
The score doesn't see news, management, competition or the wider economy.
Change the growth or discount rate and the answer changes. That is why we show a range.
| Check | Max | How it scores |
|---|---|---|
| DCF Valuation | 25 | DCF value vs price. More than +40% above scores full points; below −25% scores 0. |
| EV/EBITDA vs Peers | 20 | Discount or premium to the sector median multiple. A 30%+ discount scores full points. |
| Revenue Growth | 15 | Year-over-year sales growth. Above 20% scores full points; declines score low. |
| FCF Quality | 15 | Free cash flow ÷ market cap (FCF yield). Above 6% scores full points; negative scores 0. |
| Profitability | 15 | Operating margin. Above 25% scores full points. |
| Balance Sheet | 10 | Net debt ÷ EBITDA. Net cash scores full points; above 3.5x scores 1. |
| Sector | Discount rate | Typical EV/EBITDA |
|---|---|---|
| Technology | 9.5% | 22x |
| Healthcare | 8.5% | 16x |
| Financials | 9.0% | 12x |
| Consumer Discretionary | 9.5% | 14x |
| Consumer Staples | 7.5% | 13x |
| Energy | 10.5% | 8x |
| Utilities | 7.0% | 10x |
| Industrials | 9.0% | 14x |
| Materials | 9.5% | 10x |
| Real Estate | 7.5% | 18x |
| Communication Services | 9.0% | 14x |
Target price = 60% DCF value + 40% EV/EBITDA value. If the DCF looks unreliable, we leave it out and say so.