Question 1

What is AInvestor and how does it help with stock analysis?

Accepted Answer

AInvestor is a stock analysis platform that provides DCF valuations, investment scoring, and financial health assessments for S&P 500 stocks. Our algorithms evaluate profitability ratios, growth potential, market position, and valuation multiples to evaluate financial strength, estimate fair value, and compare stocks across the S&P 500.

Question 2

How is the AInvestor Score (0-100) calculated and what does it measure?

Accepted Answer

The AInvestor Score is a 0-100 rating that evaluates stocks across financial health and investment quality. It analyzes profitability metrics (ROI, ROIC, margins), growth indicators (revenue and earnings growth), valuation efficiency (P/E and PEG ratios), and financial strength (debt levels, liquidity). This helps investors quickly assess if a stock is fundamentally sound and fairly valued.

Question 3

What are the four valuation methods AInvestor uses to calculate fair value?

Accepted Answer

AInvestor uses four valuation methodologies: (1) Discounted Cash Flow (DCF) - based on present value of future free cash flows; (2) Peter Lynch Fair Value - using earnings power and growth rates; (3) Trading Multiples PE - applying industry P/E ratios; (4) Earnings Power Value (EPV) - based on normalized sustainable earnings. These are weighted and combined to provide a robust fair value range.

Question 4

What investment recommendations does AInvestor provide based on fair value analysis?

Accepted Answer

AInvestor provides actionable recommendations (Buy, Hold, Sell, Strong Sell) by combining the AInvestor Score with fair value calculations. The recommendation engine evaluates the relationship between current price and fair value, the investment score rating, and overall valuation relative to financial metrics. Buy signals indicate stocks trading below fair value with strong fundamentals, while Sell signals suggest overvalued positions.

Question 5

Which stocks and sectors does AInvestor provide stock analysis for?

Accepted Answer

AInvestor covers all S&P 500 stocks across every major sector: technology, healthcare, financials, consumer discretionary, consumer staples, industrials, energy, utilities, real estate, materials, and communication services. Whether analyzing blue-chip technology companies, dividend stocks, or industrial manufacturers, AInvestor delivers detailed financial metrics and fair value calculations for informed investment decisions.

Question 6

How frequently are stock prices and financial data updated on AInvestor?

Accepted Answer

Stock prices are updated in real-time during market trading hours. Fundamental financial metrics from SEC filings (10-K annual reports and 10-Q quarterly statements) refresh quarterly when new data becomes available. This ensures your DCF valuations, valuation multiples, and investment scoring reflect the most recent financial performance and market conditions.

Question 7

How can I use AInvestor to identify undervalued stocks for my investment portfolio?

Accepted Answer

Start by searching for a stock to view its comprehensive valuation analysis including DCF and multiple valuation methods. Compare the market price against AInvestor's fair value range to identify undervalued opportunities. Review the AInvestor Score to assess financial health, examine the investment recommendation for guidance, and use these financial metrics across S&P 500 stocks to build a well-researched, fundamentally sound portfolio.

Question 8

How has the AInvestor model performed historically?

Accepted Answer

We backtested our model across multiple historical periods to validate its effectiveness. Our backtest analysis shows how the model's buy recommendations have performed against the S&P 500 index, including win rates, average returns, and risk-adjusted metrics. Check our detailed backtested results page to see the historical performance data and methodology.

Question 9

What is the eToro partnership? How does it work?

Accepted Answer

AInvestor has partnered with eToro, a leading global investment platform, to help users execute their investment strategies. When you use our stock analysis to make investment decisions, you can trade directly on eToro with 0% commission on ETFs, access to live charts, and advanced trading tools. We earn a referral commission at no extra cost to you. Learn more about our partnership terms, compliance guidelines, and risk disclosures.

Stock Analysis & Fair Value

Frequently Asked Questions

Stock Analysis & Fair Value

Frequently Asked Questions

What is AInvestor and how does it help with stock analysis?

How is the AInvestor Score (0-100) calculated?

What valuation methods does AInvestor use?

What investment recommendations does AInvestor provide?

Which stocks does AInvestor analyze?

How has the AInvestor model performed historically?

What is the eToro partnership? How does it work?