There are many methodologies in determining value. I review about 250 companies a year and pick about 4 or 5 per year that appear, based on public data, to be outstanding values. I pick XEROX. Pick any random stocks, any 100 in fact, and I will give you reasons why xrx is a better buy. Minimum undervalued by 25%.
Mostly, I find many reasons not to own a stock. Lack of earnings, high speculative interest, low book value, too much goodwill and intangible assets on the balance sheet, insider selling, stock dilution, etc., etc. You get the picture. In fact, I rarely like a stock. I pick XEROX. $$$ in the bank.
I also picked TG & JAKK when they were below $14, GMT & NTGR when they were $18, MCD & MCK under $30, and a few other stocks selling below $8 like METH, CTB, DXPE, & AVL @ $5.75. Each time I was rebuked by people who hang around boards to gripe and talk investors out of a buy. Most shorts can't value a stock so they short everything and try to talk it down with alledged knowledge that adds up to squat.
Value is in the eye of the beholder, regardless of how you value it. I pick XEROX. The next hpq, a better story than ek, gm, f, ge, and many fallen blue chips. I also bought gnss today. Based on the chart, a rare opportunity to take advantage of a temporary downturn. How about finl or fred or tma selling at 1.3 x book value? But for a year end rally, XEROX is my pick. A winning stock has to be in portfolio by year end so MM look good. Funds will have to buy. XRX absolute gift at this price.
I agree that by every measure XRX looks great. Compare it to HPQ and you scratch your head as to why.
The missing element is revenue growth. The market wants revenue growth. The hesitation from Moody's is the revenue growth issue. This stock has flat lined for 2 years because there has not been revenue growth. Until the market sees the revenue increase, we are seeing a ceiling on this issue.