Investors often buy stocks based on emotions rather than facts. Apple (AAPL) offered two very different buying opportunities—one in December 1999 and another in December 2000. The key difference? Valuation.
Most people think investing is about picking stocks and hoping they go up. But real investing is more like running an insurance company. The most successful investors—those who have built billions in wealth—know that some of their investments will lose money. But they don’t let those losses shake their confidence because they understand the big picture.
Viking Therapeutics (VKTX) is a textbook example of how ERS risk ratings can help investors avoid catastrophic losses. Despite sharp declines in its stock price over the past year, VKTX remained a high-risk stock at every stage of its fall.
While many investors in 2021 were still optimistic about PATH’s long-term potential, ERS’s system flagged profound risk. And the data proved correct—by March 2022, PATH had plummeted to $30.
Comparing the Net Present Value (NPV) of a public company with its market capitalization is one of the most rigorous and reliable methods for assessing whether a stock is overvalued or undervalued.
At Equity Risk Sciences, we don’t deal in speculation—we quantify risk. Palantir (PLTR) may be growing, but is it a safe investment? The data tells a different story.
At its peak, investors valued Palantir at $192 billion. Today, it’s $178 billion—but is it truly worth that much?
Last month, investors valued Reddit at $40.75 billion. Today? $19.4 billion—a 52% drop in just over 30 days. What went wrong? Was Reddit ever worth $40 billion? What’s stopping it from falling to $10 billion—or even lower?
Imagine holding Microsoft stock in 1999—one of the world's greatest companies—only to watch it lose 37% over the next decade. What went wrong? Overvaluation. In this video, we use Equity Risk Sciences’ Profit Map™ to break down why price matters more than growth and how investors can avoid these costly mistakes.
In 1999, investors were paying too much for the biggest stocks in the market. Over the next 10 years, revenues for these companies nearly doubled—but their stock prices collapsed. Why? Overvaluation. Investors paid too much.