Final edit: Thank you for all of the brilliant and thoughtful insights. The people who replied shared excellent strategies to find value in the market.
This is an incomplete summary of my approach, not everything… but generally what I do. Working out very well.
I’ll create a thesis and set a stop loss and profit target based on these considerations (much more, but that would take way too long)
I start with simple valuation metrics when I look for a value investment. Sometimes I look at asset classes I think are undervalued and due for a rotation, other times I check back in on companies I have researched and see if an entry makes sense…. Sometimes I just look around at companies I know and have on watch…
My first metric is Book value. If I like the book value, I go deeper. P/S, then TTM P/E and forward P/E. ( do some research into the raw financials to see what’s behind the numbers).
If I like what I see I’ll go deep into leadership. Get to know the people running the company. Look at them as a person and job history. If I don’t like their past for any number of reasons (say- once ceo of now bankrupt company, will pass. I will also look at personal life, but most times that information is scrubbed).
After getting into financials and getting sound grasp on the company in that perspective, I look into technical indicators and will assess the charts.
As a side- 66% of the member of this sub don’t like the post. I don’t care about likes, but found it odd. If you read these replies, you can learn so much that will undoubtedly help you find brilliant investments.
First edit: thanks for sharing. Insightful replies. 👍
Thank you for sharing brilliant insight into your process.
Original post below.
Curious what members of this sub use to determine a value investment.
Do you use valuation metrics?
Do you look at technical indicators?
What and how do you determine value?
Curious if people find value the same ways or if it’s dramatically different….
I’ll edit the post to add mine later and explain how and why I use them.
I find that when an op shares theirs, replies focus on the ops idea rather than sharing their own…
I don’t want to cloud the discussion with support and criticism before we get to see how similar or different we calculate value…
2nd edit: Just as a side- Checked post insights…. Only 33% of people “like” this… that says it all. Im beside myself appreciating the depth you peeps are sharing. There is gold in these replies. Sincerely grateful for sharing.
If 66% of this sub dislikes what is happening here….
Well, you can decide what that tells you.