Glossary · Valuation
Price verdict
Our one word read on price: below fair value, within the fair range, above it, or speculative.
Why it matters
It turns the valuation into a plain answer without hiding the numbers behind it.
How to read it
Below fair value means under the buy price. Within the fair range means between the buy price and the upper band. Speculative means profits are too small or uneven to value yet.
Related
Fair valueOur estimate of what one share is worth, based on the cash the business can produce.Buy price (margin of safety)The fair value minus a safety margin. Below this price we call a stock undervalued.Business quality scoreA 0 to 10 score of how good the business is, scored against its own industry.
In the Cluenex app, this explanation opens next to every price verdict figure, with the live reading for the stock you are looking at. Open it in Cluenex