How Do I Use ValueMyStock.com?

1. Selection

Find a potentially under-valued stock or search for candidates in our Robo Screener. Follow @ValueMyStock on Twitter or StockTwits for daily stock ideas.

2. Valuation

Open the Valuator™ formula, enter the company into the “Target Company” box and enter or choose up to four comparable companies. Learn how to find quality comparables.

3. Results

Your valuation results with a Target Price and Margin of Safety. Target Price is the intrinsic value while Margin of Safety represents how much your target company is undervalued or overvalued. An undervalued stock is defined as any stock with a 30% or greater Margin of Safety. A Confidence Index lets you know if the comparables you selected are a good match for your target company.

4. Research

If your target company is undervalued, conduct your own research. Review the latest 10-K or 10-Q. Look for potential lawsuits or other factors that may explain why the stock price is artificially low. If your research checks out, then the next step is…

5. Buy/Sell

Purchase the undervalued stock and hold it until it reaches the target price. Revaluate your holdings every quarter. Use the proceeds from your sales to add new undervalued stocks to your portfolio.

“There are substantial rewards for adopting a regular routine of investing and following it no matter what, and additional rewards for buying more shares when most investors are scared into selling.” -Peter Lynch, Research Consultant at Fidelity Investments & Wall Street Icon