Better valuation is better investing.
The FFER is a comprehensive valuation ratio powered by machine learning.
Scroll down for the FFER table...
What does the FFER look like?
The "Fundamental Fitted Estimate Ratio" (FFER) is the ratio between the actual market price and the "Fundamental Fitted Estimate" (FFE) price. The FFE is the estimate generated by the machine learning model and is conceptually represented by the green line in the diagram above.
- An FFER of 1.0 suggests a correct valuation.
- An FFER of 2.0 suggests a 2x over-valuation.
- An FFER of 0.5 suggests a 2x under-valuation.
Example stocks. See all stocks. Click on the for detailed analysis.
| Ticker ⇕ | Name ⇕ | Price ⇕ | FFE Price ⇕ | FFER ⇕ | |
|---|
| TSLA |
Tesla, Inc |
$732.23 |
$38.27 |
15.87 |
|
| AAPL |
Apple Inc |
$132.03 |
$13.58 |
8.83 |
|
| AMZN |
Amazon.com, Inc |
$3,333.00 |
$420.01 |
7.19 |
|
| FB |
Facebook, Inc |
$302.82 |
$80.97 |
3.48 |
|
| T |
AT&T Inc |
$29.73 |
$12.84 |
2.34 |
|
| HD |
The Home Depot, Inc |
$320.09 |
$181.84 |
1.66 |
|
| JPM |
JPMorgan Chase & Co |
$151.39 |
$103.04 |
1.49 |
|
| KO |
The Coca-Cola Company |
$53.11 |
$39.21 |
1.34 |
|
| BAC |
Bank of America Corporation |
$39.96 |
$27.92 |
1.18 |
|
| WMT |
Walmart Inc |
$139.46 |
$114.82 |
1.17 |
|
| UNH |
UnitedHealth Group Incorporated |
$376.85 |
$375.14 |
0.99 |
|
| VZ |
Verizon Communications Inc |
$57.69 |
$65.21 |
0.89 |
|
| GM |
General Motors Company |
$58.61 |
$64.21 |
0.87 |
|
| COST |
Costco Wholesale Corporation |
$363.17 |
$472.90 |
0.74 |
|
| CVS |
CVS Health Corporation |
$75.10 |
$163.02 |
0.46 |
|
| F |
Ford Motor Company |
$12.26 |
$28.44 |
0.43 |
|
Why is the FFER useful?
You can use the FFER as a valuation metric similar to the Price/Earnings, Price/Book, or EV/EBITDA ratios. The difference is that the FFER is comprehensive. Each FFER is calculated using 9 dimensions, including earnings, revenue, operating income, cash, and dividends.
Like other valuation metrics, the FFER tells us the intrinsic value of the stock and whether it is cheap or expensive. If the actual price is lower than the fundamental price, it implies that it is cheap relative to the market. Likewise, if the actual price is higher than the fundamental price, it implies that it is expensive relative to the market.
Where can I learn more?
Read more including technical details and performance analysis here.
