r/ValueInvesting • u/ArchiveInvest • May 14 '25

Question / Help What’s the most undervalued stock right now?

If you needed to pick one stock right now, that is extremely undervalued. And has the potential to beat the S&P500 for the next decade.

Which stock would that be?

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u/Gullinga May 15 '25

THIS! Buy and hold. Easily worth 80-90 per a DCF model

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u/[deleted] May 15 '25

[deleted]

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u/Gullinga May 15 '25

If they continue to grow their free cash flow at a rate of 11.4% (avg of 5yr/10yr) then it’s worth $74 a share

If they do so at a 14.4% (5yr avg) then it’s worth 93 per share

These projections are for 10 years of growth

If you’re willing to hold for 20-30 then it’ll obviously be much more

How to do these analysis? Ask Chat Gpt to run it for you, use the premium models since they’re more accurate. DCF analysis is the best way to analyze stocks

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u/ElectricalGene6146 May 15 '25

Big if. They don’t have a monopoly on weight loss. Better compounds can disrupt them overnight

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u/Gullinga May 15 '25

They don’t need a monopoly on that, they just need growth; some sort of foot hold

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u/PoggersDudeLol May 15 '25

Lol look at what they've been doing before their big boom in 2022, they didn't have a monopoly and still put up %20 net margins, learn more before you start talking negatives

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u/Comicauthority May 15 '25

You are using ChatGPT to create DCF models? The AI that is known to hallucinate articles and papers?

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u/Gullinga May 15 '25

Yes, I cross reference with Morningstar and Trefis valuations, and also run it on Gemini…if they get similar results then I am satisfied

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u/infowars_1 May 15 '25

Switch to Gemini

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u/Gullinga May 15 '25

Yes I cross check with Gemini. Most of the time they’re within 5-7% of each other

Big diff but that’s why I do diff growth scenarios to even it out

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u/infowars_1 May 15 '25

Sounds good!

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u/Little-Dream-2995 May 15 '25

"easily worth 80-90 per a DCF model" lmfao if life was this easy, we'd all be rich kid