Most of these systems are pre-programmed with only ONE basic formula to calculate the IV of a stock…
Now I won’t go into the mathematical details here BUT, do know this…
Not all IVs are calculated the same way. The right valuation method must be applied to different types of companies…
…we have companies that have inconsistent cash flow
…we have businesses reporting poor earnings but are actually undervalued gems…
We simply can’t use one single method to value all 6,000 stocks on the exchange!
Now, what happens when you blindly follow the IV generated by some black box system using a crude, one-size-fits-all method?
You end up grossly misvaluing the stock and sabotaging your profits. Rings a bell?
Which is why I’ve created my own magic tool to get a more accurate read of the intrinsic value…