undervalued stock finder

For making better investing decisions

WHY?

The global stock market consists of 50 000 - 60 000 stocks and is performing with an average return of 7-8% per year after inflation. However, the growth is driven only by very small number of companies, it is roughly 50 to 100 companies that drive the majority of global stock market growth in any given year. So by investing in ETF’s, you invest the majority in losing stocks, but finding those high-performing stocks have always been extremely time-consuming and difficult. So we came up with AI-powered analytics tool that makes proper analysis instantly and gives the most undervalued stock ideas instantly. By investing in those stocks, you significantly increase your growth potential and decrease proportion of bad-performing stocks in your portfolio.

 FOR WHOM?

For those who want to bet more on logically discovered undervalued stocks rather than investing in whole stock market ETFs. For those who not only invest in ETF's but also want to buy some single stocks with larger exposure in their portfolios. For those who are looking to take profits within a few months to a few years. For a retail investor who do not have time, knowledge and resources to analyse stock market. Recommended for around 20% of your portfolio.

 How does it work?

  1. Choose one of the top 3 fastest-growing industries.

  2. We give you a list of the top 10 most undervalued stocks accordingly to the industry. Ranking from first to tenth accordingly to analysis.

  3. For the stocks you choose to buy, we give you an estimate of the growth forecast and an automated signal to sell when the target is reached.

WHAT DOES THE FULL ANALYSIS INCLUDE?

INDUSTRY VALUATION

  • Understand where the industry is in its lifecycle:

    • Emerging - New tech, high innovation, low adoption

    Investment - High growth, high risk

    • Growth - Rapid adoption, increasing revenue

      Investment - Best risk-adjusted returns

    • Mature - Slower growth, market saturation

      Investment - Stable, dividends, consolidation

    • Declining - Shrinking demand, disruption

      Investment - Risky, turnaround only

      ✅ Favor industries in growth or early-mature phases.

    • TAM (Total Addressable Market): How big is the opportunity?

    • CAGR (Compound Annual Growth Rate): How fast is it growing?

      ✅ Look for industries with high TAM and 5%+ CAGR, ideally >10%.

      Tools used:

  • Does the industry benefit from powerful global trends?

    Examples:

    • AI / Cloud Computing: Digital transformation

    • Green Energy: Climate action, regulation

    • Healthtech / Biotech: Aging population

    • Cybersecurity: Digital risk, national defense

      ✅ Bonus if an industry rides multiple tailwinds.

  • Assess how many players are in the space and how defensible their positions are.

    Key metrics:

    • Market concentration: Is it dominated by a few players (good) or oversaturated?

    • Barriers to entry: Patents, tech, regulation, brand?

    • Profit margins: Higher industry-wide margins = stronger moat

    ✅ Look for industries with moats and manageable competition.

  • Use industry-wide financial data:

    • Average Return on Equity (ROE) and Return on Invested Capital (ROIC)

    • EBITDA margins, net margins

    • CapEx requirements (asset-heavy vs light)

    • Debt levels

    ✅ Industries with high ROIC and stable margins are often better bets.

  • Is the industry highly regulated? Are new policies likely to help or hurt?

    • Heavily regulated: Healthcare, finance, energy

    • Lightly regulated: Tech, e-commerce (but may face future crackdowns)

    ✅ Favor industries with stable or supportive regulation unless you're an expert.

  • Evaluate potential threats:

    • Tech disruption (e.g., streaming disrupted cable)

    • Commoditization

    • Global trade/geopolitics

    • Regulatory changes (e.g., crypto bans, ESG mandates)

  • Industries that invest heavily in R&D or embrace innovation tend to outperform.

    Look at:

    • Patent filings

    • % of revenue spent on R&D

    • Number of startups / M&A activity

  • Sometimes, a great industry is already priced for perfection. Compare:

    • Current P/E or EV/EBITDA ratios across the industry

    • Growth-adjusted valuation (PEG)

    ✅ Best industries are growing fast but not yet overvalued.

    • Lifecycle: Growth

    • TAM: $250B+ by 2027

    • CAGR: ~12–15%

    • Tailwinds: Remote work, cloud, ransomware, government spending

    • Margins: High

    • Players: Palo Alto, CrowdStrike, Zscaler, Fortinet

    • R&D: High innovation
      ✅ High industry potential

COMPANY VALUATION

  • Formula: Price / Earnings per Share

    Explanation: How much investors pay per $1 of earnings

    Ideal Signal: Low P/E (compared to sector) may mean undervalued

  • Formula: P/E ÷ EPS Growth Rate

    Explanation: Valuation adjusted for growth

    Ideal Signal: PEG < 1 = undervalued

  • Formula: Price ÷ Book Value per Share

    Explanation: Compares price to accounting value of assets

    Ideal Signal: P/B < 1 = undervalued (esp. in banks)

  • Formula: (Market Cap + Debt – Cash) ÷ EBITDA

    Explanation: Used for comparing companies regardless of capital structure

    Ideal Signal: Low EV/EBITDA is better

  • Formula: Price ÷ Sales per Share

    Explanation: Useful for unprofitable firms (e.g., tech startups)

    Ideal Signal: P/S < 2 generally attractive

VALUATION METRICS

Help determine if a stock is cheap or expensive relative to its fundamentals.

  • Explanation: YoY or 3–5 yr growth in sales

    Strong Signal: >10% YoY (growth stock)

  • Explanation: Growth in net profit per share

    Strong Signal: Sustainable double digits

  • Explanation: Growth in cash after operations and capex

    Strong Signal: Positive & expanding over time

  • For SaaS and platform businesses

    Strong Signal: High user growth

GROWTH METRICS

Evaluate how fast the company is growing.

  • Formula: Net Income ÷ Revenue

    Good Signal: >10% = good (varies by sector)

  • Formula: Operating Income ÷ Revenue

    Shows core profitability

  • Formula: Gross Profit ÷ Revenue

    Good Signal: High = product/service is priced well

  • Formula: Net Income ÷ Shareholders' Equity

    Good Signal: >15% is strong

  • Formula: Net Income ÷ Total Assets

    Explanation: Measures efficiency of asset use

  • Formula: NOPAT ÷ Invested Capital

    Good Signal: >10% is a quality signal

PROFITABILITY METRICS

Tell you how efficiently the company converts revenue into profit.

  • Formula: Revenue ÷ Total Assets

    Good Signal: >1 = efficient

  • Formula: COGS ÷ Inventory

    Strong Signal: High = fast-moving goods

  • Formula: Revenue ÷ A/R

    Strong Signal: High = collecting payments fast

EFFICIENCY METRICS

Tell how well the company uses its resources.

  • Formula: Total Debt ÷ Shareholders' Equity

    Good Signal: <1.0 preferred

  • Formula: Current Assets ÷ Current Liabilities

    Good Signal: >1.5 = good short-term liquidity

  • Formula: (Cash + Receivables) ÷ Current Liabilities

    Strong Signal: >1 = strong liquidity

  • Formula: EBIT ÷ Interest Expense

    Good Signal: >3 = can service debt comfortably

FINANCIAL HEALTH

Assess how much debt and financial risk the company carries.

  • Formula: Operating Cash Flow – CapEx

    Good Signal: Positive = self-sustaining

  • Formula: FCF ÷ Market Cap

    Good Signal: >4–5% is attractive

  • Formula: FCF ÷ Net Income

    Strong Signal: >1 = high earnings quality

CASH FLOW METRICS

MARKET SENTIMENT & INSIDER ACTIVITY & OWNERSHIP

  • Formula: % of shares shorted

    Signal: High = bearish sentiment (or squeeze risk), potential opportunity for buy in the future

  • Formula: % held by executives/directors

    Signal: High = skin in the game

    Measure insider activity: share sales by insiders can be considered as a risk factor.

  • Formula: % held by funds

    Signal: High = analyst backing, but can increase volatility

  • Track trends and momentum over time.

  • Tells if it is good time to buy or not

  • Chart situation compared to competitor companies with similar metrics

MOMENTUM METRICS & CHART SITUATION

UNDERVALUED STOCK FINDER
€90.00
One time

Gives you most undervalued stocks with highest potential within a few minutes.