When to trust a number
Data levels, withheld fair values and the small caution lines.
You will learn
- What "broad", "some" and "thin" data mean for the range
- Why the tool sometimes shows no fair value on purpose
- Which caution lines turn a bargain into a question mark
Transcript
Lesson three is about trust: when to believe a number, and when the tool itself tells you not to.
Every analysis carries a data level: broad, some or thin. It says how many years of accounts and how many models stand behind the result. Thin data means a wide range, so treat the number as rough.
Sometimes we show no fair value at all. That is on purpose. If a company has no earnings basis, or the data contradicts itself, we would rather show the verdict without a number than a number we cannot defend.
Watch the small caution lines on the cards: a one-off profit, a goodwill write-down, a penny stock, a dividend that is not covered. They tell you why a cheap-looking stock may not be a bargain.
Our rule inside the tool is simple: nothing disappears silently. If we hold a number back, we say so, and why. That is the kind of honesty I would want from a tool I use with my own money.