u/WorldRank1CatFancier ·
Reddit — r/ValueInvesting
· July 26, 2026 at 19:58
· ⬆ 18 pts
· 💬 31 comments
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AI Summary
Summary
The author uses META’s 2022 valuation of ~6.5x FCF as an example of genuine value, contrasting it with stocks that fall 20% from ATH but still trade at 20x FCF.
The thesis is that investors have become desensitized to high valuations and mistake moderate pullbacks for value opportunities; true value is objective and historically rare.
The post is general commentary/opinion, not a detailed analysis of current opportunities. It lacks current data, financials, or a specific actionable thesis.
Score18
Comments31
Upvote %69%
▶ Full Post Text
Investors make the mistake of getting so acclimated to super rich valuations for 10+ years straight in 90%+ of stocks, that they forget what value looks like.
Buying something that's growing 5-10% at 20x FCF is not a value opportunity just because it's down 20% from it's ATH.
Value is not subjective, it is objective.
The more you study opportunities from history (even recent history, in the case of $META 2022), the less FOMO you'll feel to buy trendy stocks just because they've fallen 20% (from like 25x FCF to 20 FCF).
\[obligatory edge case disclaimer when you believe a company will sustain 20%+ growth for several years, and therefore you believe 15x\~ FCF is indeed value\]