u/Aware_Secret_8910 ·
Reddit — r/ValueInvesting
· May 29, 2026 at 17:31
· ⬆ 17 pts
· 💬 71 comments
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AI Summary
Summary
The author expresses frustration finding undervalued stocks across sectors: consumer defensives at 20-25x PE with low growth, SaaS bifurcated with high multiples or distress, mid-caps with high debt, and AI stocks with nonsensical forward PEs.
Thesis: The market is pricing in a “no recession” scenario and full recovery, leaving few margin-of-safety opportunities for value investors, partly due to low bond yields and asset saturation.
Quality assessment: This is a general market observation/opinion piece, not a data-driven deep dive. It lacks specific tickers or financial models, so it qualifies as noise rather than well-researched DD.
Score17
Comments71
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Hello everyone, I have at this point checked the financials of hundreds of companies and I genuinely can't find more than a couple of stocks that seems like a decent deal.
Consumer non durables defensive stocks are up there at 20-25PE and growing anywhere between 0-5% a year, consumer durables feel like they are almost all at the peak of their cycle, except maybe cars.
Even potential turnaround stories are discounting the fact companies will come back to full profitability in the next quarter.
SaaS is still divided between stocks that somehow warrant a 100x Sales to market cap and companies that are considered to go bankrupt next year. At the same time most SaaS is plagued with absurd stock based compensations that make me flinch at the idea of considering them.
Most of the companies that might be interesting under an earnings standpoint in the 1B-50B range are plagued with a debt/ebitda of 2x-3x and no cash in hand, and many would not survive a downturn in their own sector.
And then you have AI related tech stocks.
Half of these stocks have a forward PE that does not make sense once you run the numbers and the other half, luckily for them, do not have a PE.
I do understand that this has to do with bond yields being generally terrible for more than a decade, housing being saturated and gold kind of being there.