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After losing a lot of money on value stocks that turned out to be value traps, I developed a new stock selection method. I reduce last year’s free cash flow by 50%, and if the enterprise value is less than 20 times that adjusted number, I consider it a buy. This gives me a margin of safety. I also check stock sentiment and the business fundamentals as well. Do you think this is a good idea to not fall into value traps?
Do you have any stock recommendations that fit this criteria?