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#valuation
12 posts tagged valuation.
12 posts
EV/Revenue: The Multiple That Survives When Earnings Don't
EV/Revenue works where P/E breaks — early-stage businesses, loss-making growth, cyclical troughs. The card makes it usable across cycles, but only with the growth bridge — a standalone sales multiple is uninterpretable.
FCF Yield: What You're Actually Earning on the Market Cap Today
Free cash flow yield answers the investor's most basic question: if I buy this company today, how much cash does it throw off per dollar? The FCF Yield card on alphactor.ai turns the question into a time series.
Earnings Power Value: Bruce Greenwald's Valuation Without the Growth Fantasy
EPV asks what a company is worth assuming zero growth — forever. The gap between EPV and market cap is the growth premium. A stock at 3× EPV is priced for aggressive growth; you can decide separately whether that growth is believable.
Valuation Sensitivity: The Grid That Shows What Your Assumption Is Worth
A DCF prints one number; the truth is a distribution. The Sensitivity card on alphactor.ai fundamentals shows how the fair value flexes across WACC, terminal growth, and margin assumptions — so you can see the bet, not just the point estimate.
PEG Ratio: The Growth-Adjusted P/E That's Less Naive Than It Looks
PEG is often dismissed as crude, but used carefully it's a durable cross-sectional screen. The tool stays useful once you use long-term EPS growth, decompose organic vs buyback-driven growth, and compare inside a profit-consistent peer group.
Reverse DCF: Solving for What the Market Is Already Pricing
A forward DCF tells you what a stock is worth. A reverse DCF tells you what the market has already decided. Here's how to use the Reverse DCF card on alphactor.ai to turn valuation upside-down.
Rule of 40: The Single Number That Separates Good SaaS From Bad
Rule of 40 collapses growth and profitability into one check. Here's how to read the Rule of 40 card on alphactor.ai and when the shorthand actually works.
DCF vs Multiples: When to Use Each Valuation Method
When discounted cash flow analysis works, when relative multiples are better, and the pitfalls that trip up both approaches.
Understanding P/E Ratio: A Complete Guide for Investors
Learn what the P/E ratio means, how to interpret it, and when it can mislead you. Includes sector comparisons and practical examples.
Price-to-Sales for Growth Stocks: When Earnings Don't Exist Yet
How to use price-to-sales ratio to value high-growth companies that are not yet profitable, and the traps that make this metric dangerous.
Price-to-Book Value: Useful for Banks, Misleading for Tech
When price-to-book ratio works as a valuation tool, when it completely fails, and how to apply it correctly by sector.
EV/EBITDA: The Valuation Metric Professionals Use Instead of P/E
Why enterprise value to EBITDA is the preferred valuation metric on Wall Street, how to calculate it, and when it gives a clearer picture than P/E.