INDEX
VDIX
ValueDetect Intrinsic eXpectations Index
Overvalued market
MARKET VALUATION
VDIX market valuation index
VDIX measures whether the market is expensive or cheap relative to intrinsic value. For each company, ValueDetect estimates fair value using a discounted cash flow (DCF) model, then compares it with the current share price to derive a RiskRatio. These signals are capped, weighted by market capitalization, and aggregated into a single market-wide score.
METHODOLOGY
How VDIX is calculated
01
DCF-based fair value
Each company has a FairValuePerShare estimated using a discounted cash flow (DCF) model based on projected future cash flows.
02
Compute RiskRatio
The gap between current price and DCF fair value is converted into a RiskRatio. Positive = undervalued, Negative = overvalued.
03
Cap and weight
RiskRatio values are capped to [-5, 1] and weighted by MarketCap.
04
Aggregate
All companies are combined into one market score using a weighted average.
VDIX formula
Σ(clamp(RiskRatio, -5, 1) × MarketCap) / Σ(MarketCap)Below 0 = overvalued market
Around 0 = fairly valued
Above 0 = undervalued market
TIME SERIES
Historical VDIX score
Daily history of the market-cap weighted intrinsic value signal.
Undervalued market
Fair value
Overvalued market
Current regime
Overvalued
Index
VDIXFair Value Rankings
Market Price vs Intrinsic Value
Quick access to the most undervalued and overvalued stocks, ranked by their discount or premium to DCF-based fair value.
Undervalued
View full rankingStocks trading below fair value
1
Delta Air Lines Inc
DAL
+80%
discount2
Brown & Brown Inc
BRO
+79%
discount3
Verizon Communications Inc
VZ
+78%
discountOvervalued
View full rankingStocks trading above fair value
1
Bank of America Corp
BAC
+393%
premium2
Applied Materials Inc
AMAT
+392%
premium3
Guidewire Software Inc
GWRE
+391%
premiumLatest Research
View all analysesRecent equity analyses
Individual company valuations based on financial statements, profitability, and discounted cash flow (DCF) analysis.
Overvalued
Ciena Corp (CIEN) High Valuation Meets Thin Margins
Can today’s price be justified with thin operating margins?
Overvalued
PG&E Corp (PCG) Earnings Strain Under Heavy Reinvestment
Can heavy capital spending be worth today’s earnings multiple?
Slightly undervalued
WEC Energy Group Inc (WEC) Capital Spending Pressures on Utility Valuation
Can a heavy capital-spend utility justify a premium P/E?
Fair value
Xylem Inc (XYL) Returns Quality Meets Fair Pricing
Is today’s price fair for an 8.77% ROE business?
Slightly overvalued
Otis Worldwide Corp (OTIS) Margins Support a Full Valuation
Is the price already paying for more than modest growth?
Slightly overvalued
Veeva Systems Inc (VEEV) Margins Strong but Valuation Stretched
Is the balance sheet cushion enough for today’s valuation?