Key Takeaways
- 1Stock price does not equal value — a $30 stock can be more expensive than a $300 stock
- 2What matters is valuation (P/E, EV/EBITDA) and quality (profitability, margins)
- 3Many excellent companies trade under $50, especially mid-cap stocks
- 4Our 6-factor model identifies high-quality stocks at every price level
#Price vs. Value: A Critical Distinction
The most common investing misconception: stock price has nothing to do with whether a stock is cheap or expensive.
A stock trading at $20 could be wildly overvalued if the company earns $0.10 per share (200x P/E). Meanwhile, a stock at $400 could be a bargain if it earns $40 per share (10x P/E).
#What Actually Matters: Factor Scores
| Factor | Why It Matters More Than Price |
|---|---|
| Profitability | High-margin companies generate real value |
| Momentum | Trending stocks tend to continue trending |
| Value | True cheapness relative to fundamentals |
| Stability | Lower volatility = better risk-adjusted returns |
#Finding Quality at Any Price Point
- 1Start with our rankings — View all rankings →
- 2Sort by composite score — Find the highest-quality stocks overall
- 3Check individual stock pages — Review fundamentals and factor scores
- 4Compare within sectors — Evaluate stocks against industry peers
Last updated: February 10, 2026