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Analyst and Discounted Cash Flow

Overview​

The Analyst and Discounted Cash Flow profile allows exploration of valuation from two key perspectives: external analyst sentiment and intrinsic value estimates based on discounted cash flow (DCF). It combines consensus analyst targets and ratings with MarketAlpha’s internal DCF model to help identify valuation gaps, undervalued opportunities, or stretched price levels in highly liquid common shares.

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This profile is updated in real time and filters only common shares across all market sessions.

Strategy Focus​

  • Surface stocks trading significantly above or below analyst target prices
  • Compare analyst sentiment with internal valuation models
  • Identify tickers with high-quality DCF support vs. market price
  • Spot consensus Buy or Sell names backed by strong fundamentals
  • Monitor valuation dynamics ahead of upcoming earnings
  • Screen for valuation signals aligned with industry and theme leadership

Filters Applied​

  • Ticker Type = Common Shares: Includes only equity listings (excludes ETFs, REITs, etc.)

Metrics Used​

Valuation Metrics​

  • Analyst Consensus Target ($): Average 12-month price target from institutional analysts — provides external reference for potential upside/downside
  • Analyst Consensus Target Distance (%): Percentage difference between current price and analyst consensus target — quickly identifies overvalued or undervalued names
  • Discounted Cash Flow ($): MarketAlpha’s internal DCF estimate using projected free cash flows discounted for time and risk — reflects intrinsic value
  • Price To Discounted Cash Flow (%): Shows how far above or below the current price trades relative to intrinsic DCF value

Sentiment and Rating Metrics​

  • Analyst Consensus Rating: Aggregated analyst sentiment (Buy/Hold/Sell) — useful for gauging institutional alignment or contrarian ideas
  • MarketAlpha Rating: Composite AI signal incorporating technical, behavioral, and structural data

Supporting Context Metrics​

  • Relative Strength 1 Year: Helps validate whether high valuation aligns with longer-term strength
  • Industry Rating 1 Year & Theme Rating 1 Year: Adds macro and sector context to valuation — helpful for identifying hot sectors with elevated premiums or laggards with discount potential
  • Accumulation/Distribution Score: Confirms whether institutional activity supports or contradicts analyst/DCF sentiment

Additional Performance Metrics​

  • Last Price ($): Latest recorded trade price
  • 52 Week High (%): Indicates proximity to breakout or overextension zones
  • EPS Rating, Sales Rating, Profit Rating: Supports DCF and analyst insights with core fundamental momentum
  • Next Earnings In Days: Flags near-term catalysts that could close valuation gaps or shift sentiment
  • Dollar Volume Rank: Ensures visibility and liquidity — the most traded and followed names surface first

Default Sorting Logic​

Results are sorted by Dollar Volume Rank (ascending) to prioritize actively traded names with the highest visibility and institutional relevance.

Practical Use Cases​

  • Identify undervalued companies based on both analyst targets and internal DCF valuation
  • Confirm bullish setups with Buy-rated analyst sentiment and institutional accumulation
  • Detect valuation gaps ahead of earnings or fundamental re-rating events
  • Screen for DCF support zones in downtrending or sideways names
  • Spot overheated names with prices far above both target and DCF levels
  • Combine with industry and theme strength to locate discounted leaders in strong macro environments