Alpha Spread

Alpha Spread measures valuation quality using metrics like Valuation-Return Correlation (VIC), Quintile Spread, and Hit Rate. VIC measures the correlation between valuation signals and 12-month forward returns, Quintile Spread shows the performance difference between the top 20% undervalued and bottom 20% overvalued stocks, and Hit Rate indicates the percentage of cases where the valuation signal correctly predicts the direction of returns.

The latest global results show a VIC of 0.3204, a Quintile Spread of 28.3%, and a Hit Rate of 65.1%. These results indicate that undervalued stocks identified by Alpha Spread tend to deliver better forward returns, the separation between undervalued and overvalued stocks is significant, and the directional accuracy of the valuation signal is strong.

You can use Alpha Spread's Stock Screener to find undervalued stocks by describing your criteria in plain English. The tool will track your criteria and notify you when new stocks qualify. You can also use the Intrinsic Value Calculator to discover the true worth of your stocks and compare them to their market prices.

Alpha Spread offers three pricing plans: Free Plan ($0/month) with limited features and 3 stocks per week, Premium Plan ($12/month billed annually at $144) with 15 stocks per week, and Unlimited Plan ($20/month billed annually at $240) with unlimited stocks and no restrictions.

Alpha Spread ensures the trustworthiness of its valuation metrics by using a large sample size, forward-looking tests, robust statistics, and multiple lenses such as correlation, portfolio spreads, directional hit rate, tail risk, and cross-model agreement. These methods help reduce the influence of rare extreme events and provide a comprehensive view of the valuation signal's performance.

Yes, Alpha Spread offers notifications that alert you when a stock's price falls to its intrinsic value or below it with a margin of safety. You can set up these alerts through the platform's notification features.

Intrinsic value is the real worth of a company's stock based on its financial health and performance, rather than its current market price, which can be influenced by opinions and emotions. It helps investors understand if a stock is truly a good deal by focusing on the company's actual financial strength, such as earnings and debts.