Question 1

How do I find undervalued stocks?

Accepted Answer

Upsignum's Quality at a Discount dashboard screens for fundamentally strong businesses (high ROIC, ROE, FCF growth) and then checks whether the stock is trading meaningfully below its estimated fair value. Stocks in the discount zone offer a margin of safety — you're buying quality at a price the market is undervaluing.

Question 2

What is a margin of safety in stock investing?

Accepted Answer

A margin of safety means buying a stock at a price well below its estimated intrinsic (fair) value. The gap between the current price and fair value acts as a buffer against estimation errors and market downturns. Upsignum flags stocks trading at least 15% below fair value as being in the discount zone.