How Do I Use ValueMyStock.com?

All users can access our basic valuation tools. Members can access all tools, participate in the user forum, save their valuations and create a portfolio. Please follow these steps to value your stock:

1.  Stock Selection

Find a potentially under-valued stock. Check the blog, stock screeners, or review our proprietary RoboValuator and RoboStandard, which are daily reports that apply our formulas to all publicly-traded stocks. Learn how to find potential value stocks.

2.  Valuation Tool Selection

Input the ticker symbol of your target company into one or more of ValueMyStock.com’s Valuation Tools. We encourage you to run it through all of the available tools. While all tools provide a meaningful valuation, our own investment success has proven the Valuator™ to be the strongest, most accurate tool we offer.

When using the Valuator™ and Valuation By Multiples tools, members can select from the suggested comparable companies or input their own comparables. Investors should choose comparables that are as similar as possible to their target company. Learn how to find quality comparables.

3.  Valuation Results

When your valuation results are displayed you will see Target Price and Margin of Safety. Target Price is the current intrinsic value of your target company. Margin of Safety is a percentage representing how much your target company is undervalued or overvalued.

When using the Valuator™ and Valuation By Multiples tools, the valuation results will display a Confidence Index™. This index represents the strength of your valuation. The index starts at 100 and is reduced by varying degrees for target companies that lack complete financial results or for comparables that may be a poor match with the target company. If your valuation results in a low confidence index (70 or lower) you should re-examine your selected comparables and make new selections.

4.  Research

If your target company appears undervalued, it is now time to conduct your own research. Review the latest SEC filings, such as a 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 Decision

Purchase the undervalued stock. Hold the stock until it reaches the target price, and be sure to stay current with your valuations. Revalue your portfolio at least every quarter, selling stocks as they reach intrinsic value. Use the proceeds from your sales to add new undervalued stocks to your portfolio.

6.  Community Forum

You are encouraged to post in the ValueMyStock.com forum about your valuations. This serves two purposes: 1) Give other users a head start in their research, remembering what goes around comes around, and 2) direct buying activity to a stock you have purchased. Remember that you purchased a stock that is selling for less than it’s intrinsic value. You will hold it until the price reaches the intrinsic value. The price will only increase when other investors buy it.

“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