Price is not value

The price of a stock is just what the last person paid. Its value is the cash the business will actually produce for its owners over time. Dolphy estimates that value — the fair value — and shows whether today’s price sits at a discount or a premium to it.

Three lenses

  • Discounted cash flow — what future cash is worth today
  • Comparables — what the market pays for similar businesses
  • Sum-of-the-parts — valuing each segment on its own

Why it matters

Buying a stock is buying a company. Know what it is worth before you buy.