Key insights
- An investor shares their 'Value Score' methodology, comparing revenue growth, operating margin, and enterprise multiple to identify undervalued stocks. Their current portfolio, including MU, NVDA, GOOGL, LLY, MSFT, and META, has achieved a 65.8% YTD return, and the model suggests holding despite recent pullbacks. This indicates a potentially bullish sentiment for these specific tech and biotech names based on the investor's proprietary valuation metrics.
I've posted numerous times that I compare the projected revenue growth and trailing operating margin to the enterprise multiple to calculate what I call a Value Score. The median Value Score for all stocks is about 1.0. If a stock has a Value Score above 2.0, I consider it for a buy.
My current portfolio, and what has given me a 65.8% YTD return, is MU, NVDA, GOOGL, LLY, MSFT and META. Despite Friday's pullback, my model says keep holding.
If you are a bot and want to slam me, please show me your portfolio.