Fomo Score

How do I interpret the fomo score?

A higher score indicates that the stock is being offered at a more significant discount when compared to its fair market value. A score above 30% is considered to have a reasonable bargain. A negative score indicates the stock is likely trading at a higher price than its fair value.

How is the fomo score calculated?

The algorithm primarily calculates Discounted Cashflow Value (DCV) based on EPS. Instead of relying on analyst estimates, the software uses linear regression (trendlines) and historical averages from annual income statements to estimate future performance. Other variables, such as a company's Return on Investment Capital (ROIC), are also factored into the score.

How accurate is the fomo score?

Results vary depending on the completeness and accuracy of the financial data it consumes. The score is purely mathematical and doesn't involve human analysis. Instead of trying to predict the future accurately, value investors ensure that their assumptions are conservative to compensate for unknowns or unforeseeable events. We call this Margin of Safety.

What makes Fomo so different from other tools?

Many methods require you to do homework beforehand and provide assumptions for an estimated value. With Fomo in your toolkit, you'll be able to spot great buying opportunities within seconds. No manual analysis required.

Are all publicly traded companies available?

No. We require at least ten years' worth of financial data. Several international companies, recent IPOs, and OTC/penny stocks do not provide sufficient data. We will only score companies that meet this criterion, although partial analysis highlights may be available whenever possible.

Should I buy a stock only because it has a high fomo score?

Definitely not. You should only use it as a screener. If the score looks attractive, take it to mean that further research is warranted before deciding to enter a position.