Undervalued and financially sound
At least 30% below our fair value estimate, with a healthy balance sheet.
Our fair value blends what the market pays for similar companies with what the business earns on its own. A wide gap alone can mean the estimate is wrong; requiring a strong health score and an acceptable overall score filters out most companies that are cheap because they are in trouble.
$10,000 in this list since 2016
Rebuilt every month from the data public at the time
- Per year
- +15.3%
- All stocks +9.4%, S&P 500 +13.8%
- Worst fall from a peak
- -34%
- All stocks -35%
- Months ahead of all stocks
- 53%
- 120 months tested
- Stocks held, on average
- 93
- Equal weights
- Past 12 months
- +29.7%
- All stocks +4.1%, S&P 500 +12.4%
- Volatility, per year
- 22%
- All stocks 22%
- Sharpe ratio
- 0.65
- All stocks 0.40; return over cash per unit of volatility
- Replaced each month
- 27%
- Share of the list that changes at a rebalance
Live since Oct 19, 2026. Holding the list as published, rebought at each month end: +1.6% against +2.1% for all stocks and +0.7% for the S&P 500, to Oct 30, 2026. Too short a period to read much into.
- Undervalued and financially sound
- All US stocks, equal weight
- S&P 500 (price only)
Year by year
| Portfolio | 2016from Oct 31 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026to Oct 19 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| This list | +14% | +15% | -14% | +32% | +15% | +29% | -12% | +33% | +10% | +23% | +18% |
| All US stocks | +12% | +19% |
104 stocks on the list today
As of the close on Oct 30, 2026; 9 joined and 8 left since Oct 29, 2026
| # | Company | Share price | 1D | Market cap | Fair value | Margin of safety | Score | Health | P/E | EV/EBITDA |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | $2.33 | −63.9% | $299M | $13.63 | +82.9% | 16 | 4 | 2.9× | – | |
| 2 |
Left the list at the latest update
More value ideas
- Graham's defensive investorLarge, steady companies that pass Benjamin Graham's tests for the cautious investor.
- Net-netsCompanies trading for less than their current assets minus every liability.
- Magic FormulaGood businesses at bargain prices: the 30 best combined ranks on earnings yield and return on capital.
- High F-Score valueCheap stocks on book value whose finances are improving on at least 8 of Piotroski's 9 tests.
- More cash than they're worthCompanies whose net cash covers at least half of their market value.
A list produced by rules, not a recommendation. Past results in the backtest don't predict future returns. How the backtests work.