MultiHub Forum

I've been studying value investing principles for a few years, reading the classics from Graham to Buffett, but applying them to today's market feels increasingly difficult. With so many modern companies valued on growth metrics rather than tangible assets or earnings, I struggle to find traditional margin of safety opportunities. For fellow practitioners, how have you adapted your screening criteria and valuation models for a market dominated by tech and intangible assets? What are your current sources for finding potentially undervalued companies, and how do you balance quantitative screens with qualitative assessment of moats and management in an environment where disruptive change is constant?

You're right—the market's heavy focus on growth makes traditional margin-of-safety hunting trickier. A practical pivot is to emphasize cash-flow quality and durable moats over assets on the balance sheet. In my experience, the most robust screens look at free cash flow yield (FCF/EV), ROIC, and how efficiently a company converts growth into cash. For tech and intangibles, the Rule of 40 (growth rate plus profitability) is a helpful sanity check. Pair that with an explicit look at moat type (network effects, switching costs, data advantage) and a credible plan for capital allocation. Even if growth is impressive, a lack of cash generation or fragile moats usually signals risk.