# 3 Most Undervalued Stocks to Buy Now (Massive Upside Potential)

## Метаданные

- **Канал:** Everything Money
- **YouTube:** https://www.youtube.com/watch?v=4hLyjj2NPDg
- **Дата:** 28.04.2026
- **Длительность:** 22:27
- **Просмотры:** 36,638
- **Источник:** https://ekstraktznaniy.ru/video/49535

## Описание

Right now, the story on these 3 stocks has gotten really bad. And when everybody hates something — that's usually when the smart investors start paying attention. We're going to break down all 3 in a way that nobody else is talking about. #stockanalysis #

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## Транскрипт

### Segment 1 (00:00 - 05:00) []

Right now, the story on these three stocks has gotten really bad. And when everybody hates something, that's usually a smart time when a smart investor starts to pay attention. It doesn't mean they buy, but they definitely look further. So, we're going to break down all three of these stocks in a way that nobody else on YouTube is talking about. So, let's start with in it. You probably know them as Turboax and QuickBooks. And if you've ever filed your own taxes or if you run a small business, you've probably used one of these products. Now, here's what's happening. The stock is down nearly 50% from its all-time high. And the reason is Wall Street thinks that AI is coming to eat their lunch. The fear is that AI tools are going to replace Turboax. They're going to replace QuickBooks, make the whole thing obsolete. And when that fear spreads, investors sell. And when they sell, they usually sell fast and it self-perpetuates. But here's where it gets interesting. The business is still growing. They're still making lots of money, strong money. And the stock which used to trade at 40 or 50 times free cash flow is now sitting at 16 times free cash flow. Guys, that is a massive drop in what people are willing to pay for it. Now, is the AI fear valid? Of course, AI is going to change a lot of things. The question is, has the business fallen apart to a level that cannot be repaired? actually justifies the AI fear? The fear has gotten so loud that the price has gotten crushed. There are a couple of other things it down as well. Their Mailchimp product, which they bought back in 2021, has been losing customers hand over fists. It used to own 70% of the market. Now it's in the low 50s. That is not good. Overall, into its growth is slowing. They grew 17% last quarter. This quarter, they're guiding for around 10%. Still growing, but a lot slower. So, what do you do with all of this? Well, that's exactly what we're going to walk through because the question isn't whether the story sounds bad right now. The question is, what's the stock actually worth? Now, guys, you probably got sucked into this on some title and you're like, "Oh, cool title. I want you to know, do not take our titles literally. We use them as a way to getting attention and then bring somebody in to teach a lesson. " So, that's what we're here to do. So, let's pull up into its stock. As I said, the stock was at alltime high of 814. and it's now at 405, a drop of over 50%. Year to date, it is down 35%. In the last 6 months, it is down 40%. Now, the stock price is 406, but that's not the real price of the company. company is the market cap, $13 billion. That's how you compare companies. Look at the market cap. Now, enterprise value is 125. That difference of 12 billion is essentially their debt. But guys, look at this free cash flow here. Last year, they did 6. 84 billion and the last 5-year average was 4. 83. So, in less than two years of this year's free cash flow, they could pay off all that debt. Another thing I find interesting, their net income is a lot lower than their free cash flow. It's usually the other way around. And people always focus on the net income, which is why the PE, which is based on net income, is 26 while the price of free cash flow is just 16 and a half. Big difference there. Remember, free cash flow is the lifeb blood of the business. That's the one we focus on. Couple other things. Price to sales ratio 5. 6. Why does this matter? Well, guys, when you're comparing companies within industry, software, business, etc., it's nice to look at their the comparison of their price to sales ratio. Microsoft is 10. In it here is 5. 6. So, for every dollar of sales, you're only paying $5. 60 for in it, while for Microsoft, you're paying 10. Now, are they different companies? Absolutely. Are they going to make money different ways? Absolutely. But they're both software businesses. And in fact, in it has a higher gross profit, but a lower overall profit margin than Microsoft does. All right. Now, look at this, guys. Acquisitions of 9 billion over the last five years. And look at the 10-year, 5year, and threeyear revenue growth rate. 16%, 21%, 14%. That's a lot, guys. and the return on capital is getting a lot better. So, there's a lot of positives here, but again, the question is, how much will AI disrupt them? Guys, I use QuickBooks for everything. I got to tell you, I [ __ ] love the product. I think it's a great product. It's AI is quirky right now. Do I think AI can be used to help them? Absolutely. I use Claude to then sit there and verify reports that I draw from QuickBooks. So, it's not being done in-house. It's being done by me downloading my QuickBooks report, actually emailing it to myself, and I put it into Claude that verifies all the data. Now, guys, I've thrown a lot at you here. I'm gonna throw a little bit more at you. If it feels overwhelming, you're not alone. If you're new to the channel or very early on the channel, I'm here trying to simplify all this as much as possible. Investing is an art form. We're here to sit there and talk

### Segment 2 (05:00 - 10:00) [5:00]

about all of these metrics and how they work together as an art. Now, if you want to learn all of these metrics, I have a great cheat sheet for you. Click the link below or it's in the first pin comment that we have. It's a link. Click there. We will send you the PDF that describes all these key metrics for you. Explains them how they're calculated and why they're important. It's great for you to have so you can understand companies better and we can be speaking the same language as we do these videos. So go ahead and download that absolutely free right now. So let's go to the eight pillars. So guys, lower return on capital for the 5-year average. As we saw, the one year was 11. 5% give or take and buying back a few shares and these metrics of fiveyear pro um PE and 5year price to free cash flow are a little bit higher. Now, does that mean it's overpriced? Maybe, maybe not. The key here is if they can grow their earnings per share at a much higher rate, then you can justify a higher PE. That's the give and take here when it comes to PE. So, let's go see what analysts do believe. Guys, here's what's interesting. Analysts who have their own bias, 2367 per share in profit in September of 26, $41 in July of 2030. That's a huge jump, guys. So, guys, according to analysts, and again, I can't repeat till I'm blue in the face, there is human bias in there, but 15 and a half, 14, 15, 16 and a half, and almost 15% earnings per share growth over the next four years. And as for revenue, 13% 12 13 139 10 and a half%. So, is it possible these growth rates are too high? Yes. Does that mean it's going to be a business that sucks? Not necessarily. It could still grow, but at a lower pace, guys, QuickBooks is the standard for home accounting. Is AI going to disrupt it? I'm sure a AI is gonna affect it in some fashion. But can they use AI to help out with their Yeah, I'm sure it's some guys. Look how quickly I went from chat GPT to claw to something else. If QuickBooks can get their AI working very well where it double checks things in house without me having to upload a report, why would I not do that? I create the report, it runs it automatically. In fact, it' be a time where like, hey, as I'm writing the journal entry, it says, "Hey, before you click save here, look at the issue you have right here. These are the things that I look at saying and this could affect things to the positive. So guys, now we have a little bit of a story. numbers. Guys, we haven't delved into it in thorough detail, but that's okay. What I like to do is figure out, is it even worth me spending more time? And how do I do that? I go right to our stock analyzer tool and I do my analysis on into it very quickly and high level. The reason being is I've got limited time and there are thousands of stocks to look at. If I spend my time falling in love with the story and not looking at the numbers to see if it even makes sense to go look at further, I'm just going to spin my wheels. I'm gonna fall in love with the story and I'm probably going to make an investment I don't want to make. So, with that said, here is my 10-year analysis. I can do up to 20 on into it. So, first off, look at the 10-year return on capital, 25%. It shot down quite a bit in the last 5 years and is working right back up. Now, for revenue growth, I did 5, 8, and 11%. definitely lower than all the analysts believe and what the past has shown profit margin on free cash flow. I'm going to focus So I did 2830 and 32. Keep in mind last year's free cash flow number was actually higher than the 5year and 10 year and higher than my highest number. Now what PE would I put 10 years down the road? Guys, I struggle with this one. I put 18, 21, and 24 because I start at 15 or 16. I go higher for good companies, lower for bad ones. And this is one of the lowest ones I've put for a software business. Even though if you ask a 100 accountants what's the software their clients use the most. I assure you they'll say QuickBooks. Guys, there are estimates that QuickBooks owns 85% of the market in small business accounting. And I'll tell you right now, shifting accounting is a very it's not a cumbersome thing to start at the end of the year essentially to make a clean break. In past when we've gone from QuickBooks desktop to QuickBooks online, we didn't even switch accounting softwares. We just sat there and said, "Listen, starting January 1st, we're going to cut it off and we're going to start all the new books January 1st. " So, I think the switching annoyance is very high. The cost is very low in the sense of it's just annoying to do. So, why would you do that when you have everything already set up, when a company already has all of its invoices and customers in there, etc. Just stick with it. So, finally, I hit my desired return, guys. I put 9 or 10% here not because I want that because that's going to tell me essentially my intrinsic value. What's the market value for this company? Now remember, don't buy a company in my opinion because of the market average. Buy it because you're going to get an above average return. And I want to keep in mind, guys, and

### Segment 3 (10:00 - 15:00) [10:00]

let you guys know, I actually have puts on into it. Doesn't mean you should, but that means I'm trying to buy into it at a lower price and I'm being paid to wait for that. So my 9% no margin of safety return. I hit the analyze button. This is why I'm interested. I have a low price of 400 based on cash flow, high price of $8. 90, middle price of 600. This is interesting to me. Doesn't mean it's going to be a slam dunk home run, but if I have 30 or 40 companies that fit this return profile, I'm probably going to do pretty well. Now, guys, of course, there's a big narrative out there right now about SAS businesses software as a service going out of business because of AI. So what you're telling me is every AI, every software business in the world is going to go under because of this. Come on now. There might be some shakeup in there and I'm not for me. One of the things I'm doing is trying to find as many software businesses that are beaten down to kind of make a bet on software saying, "Hey, these are all beaten up, but they're making a lot of sense. So maybe a few of them get affected more than I think, but a few of them are not going to be affected like I think. " Leads me to stock number two, Salesforce. Their ticker symbol CRM. Now, you might not use it yourself, but if you've ever gotten a sales call from a big company or received a marketing email from a business, there is a good chance that Salesforce was the one running everything behind the scenes. They are the backbone of how companies manage their customers. And they've been that backbone for a long time now. The stock is down over 28% the last 6 months. And just like in it, the headline reason is AI. The fear is that AI agents are going to replace the whole system. Why pay for Salesforce seats when an AI can just do the job just as easily? That fear is real and Wall Street is pricing it in very hard. But here's what the numbers actually say. The business is still growing. They had a strong earnings beat. Free cash flow solid. The problem, according to investors, is that the beat wasn't good enough. They called it a lowquality beat. And their guidance for next year came in at 10 or 11% growth. That sounds decent, but their 5-year average was close to 15%. So that is lower guidance and on top of that there are signs that smaller businesses aren't signing up the way they used to. And when you player slower growth with AI fear, the stock will get hit. Now Salesforce is not sitting still. They're building their own AI platform called Agent Force. They're betting that AI makes them far more valuable, not less valuable. Whether that plays out is the real question. So, you've got a company that still has strong cash flow, still growing, albeit slowly, but the narrative has turned absolutely ugly. Does that sound familiar? It's the same setup we just saw with into it. Now, the question always is, what's the stock potentially worth factoring in that whole thing? So, let's pull up CRM into our analys. The current price of the company is $176 billion. The current enterprise value is$ 220. That $45 billion difference is against 14 and a half billion in free cash flow last year, 9. 6 billion last five years. And look at this net income. 7 and a half and 3. 9 over the last five. So guys, again, free cash flow a lot higher than net income. If you're new to the channel, I didn't explain it last time to you, but net income is easier to manipulate. Free cash flow is much harder. So that's why I like the free cash flow number. And plus, everybody focuses on net income. So you have a PE of 24. You have a price to free cash flow of 12. 3. Okay. 12. 3. That's pretty stinking low. Our community members have this as a buy with an intrinsic value of 296. Returns on capital not great getting better. And gross profit 78% bottom line profit look at this 10-year profit margin of 10 and a. 5%. 5year 11. 3. Last year's profit margin of 18%. growth rate, 20% a year for the last 10 years, 14% for the last five, 10% for the last three. A lot of acquisitions in there. They bought Slack. They're putting all these companies in there that really make a lot of sense to add into the company. All right, so let's go look at its eight pillars. All right, low return on capital, high PE. The rest of it is all check marks. Buying back shares. I really wish they'd buy back shares. They actually pay a dividend here of 0. 9%. Why? maybe to get included in some dividend ETFs just like Nvidia has like a 0. 01% dividend or something stupid like that. It's adorable. All right, guys. So, let's go to analyst estimates here. Another big discrepancy between analyst estimates from 11. 88 to 2149. That's an increase of what is that 60 70% in the next even higher 10 bucks. Yeah. 80% increase in the next five years with revenue growth of 911. Never forget nine nine and a half percent. Incredible. I mean guys, yeah, maybe it's not as sexy as it was before, but it's also a lot bigger than

### Segment 4 (15:00 - 20:00) [15:00]

it was before. So, let's go sit there and put it in stock analyzer and see what it looks like here because that's what we're here to do. So, stock analyzer, pull up CRM. The last time I did it, I did my personal return. So, let's figure this out here. 10-year growth five, seven and a half, and 10% revenue growth. Profit margin 12, 16, and 20. Free cash flow is a lot higher. So, I'm focusing there. I'm doing 25, 30, and 35. Now, this 30 might be a little high, but it assumes that this free cash flow between the last 5 year and one year kind of blends out. Now, PE, low returns on capital, but getting better. As you can tell, 10 years was 2. 75, 5 years 4. 1, one year 7. 15. I got 14, 18, and 22 times earnings and free cash flow, and my 9% return. Most people don't fail at investing because they don't have enough information. They fail because they freeze. When stakes are feel high and the market feels unpredictable, every decision feels like it could be the wrong one. We have all been there. Everything Money built software and a community that helps fix that feeling. Our stock analyzer tool will show you the right price to pay for any stock based on the assumptions that you get to make. Not someone else's guess, not someone else's [ __ ] It's the stuff you believe from your own research. The eight pillars will tell you a story of a business, so you know what you're looking at and what questions to ask. When you do further digging, the anxiety greatly decreases. You stop second-guessing every decision and you stop freezing. you start to move with confidence because your instincts are finally backed by a real process and real numbers. You don't need to already know what you're doing. That's the whole point. This was built for everyday people who are tired of feeling overwhelmed every time they look at the market and they want to learn to get better. So guys, start a 7-day trial for just $7. Click the link in the description below or in the first tag pin comment and run whatever stock you've been thinking about and see what the numbers tell you before you spend any more time speculating. So, I hit the analyze button, scroll down, guys. Even more attractive than into it. I got a low price of 190, high price of 520, middle price of 320. Even on the multiple of earnings side, it's still pretty close on the middle and high side. So, guys, again, I'm not saying it's a buy. What I'm saying is you've got to sit there and at least take a look at it. All right, guys. Stock number three and our last one, Service Now. And this one's a little bit different because if into it and Salesforce felt sticky, this one might be the stickiest of all three. So, here's what Sales Service Now actually does. They help big companies, we're talking about hospitals, banks, governments, massive corporations, manage all of their internal operations, IT tickets, HR workflows, legal requests, all of it runs through Service Now. It is not a consumer product. Regular people will not be using it. But the businesses that do use it, they're deeply locked in. Switching costs are enormous. This isn't software you just cancel or replace over a weekend. These systems are wired into how an entire organization runs. That's what makes this business very different. Now, the stock is down over 30% this year and over 50% from its highs in 2025. And the reason is the same story we've heard twice already. AI is going to make them obsolete. AI agents will replace the platform. Why pay for service now seats when the AI can just handle it? The valuation was already stretched. So when the fear hit, the selling was brutal. But here's what's hard to ignore. The revenue is still growing. The business keeps performing and the customers aren't leaving because leaving is really, really hard. Yes, Microsoft, Oracle, even Salesforce are all competing in this space. That is real pressure. But Service Now has spent years embedding itself so deep into the organizations that ripping it out isn't just an easy business decision. It's a whole process. So let's go run the numbers and see if the price accurately reflects all this information. So guys, price of the business $105 billion. Enterprise value 111 $6 billion difference is their essential debt. Free cash flow last year $4. 5 billion. Guys, imagine if you could pay all of your debts off. $6 billion dollars of debt with one year of free cash flow or one and a half years of free cash flow. That's what's incredible here. Now, the price of free cash flow is 23. The PE is 60 because look how different that free cash flow is to net income. Something we see a lot in SAS businesses. Adobe has it. A lot of companies like this have it. All right. Returns on capital lower 6. 3. I wonder why that is for so many of these companies, which is what makes Adobe even more amazing that Adobe has such high returns on capital. Look at this growth rate. 30% a year for the last 10 years, 24% five, 22 and a. 5% for the last three. And guys, their acquisitions aren't that much. It's 2. 35 billion over the last five years, guys. They've averaged 2. 9

### Segment 5 (20:00 - 22:00) [20:00]

billion a year for the last five years in free cash flow. Their total acquisitions was 2. 35 in the last five years. That is absolutely incredible. So, let's go check out our eight pillars. A lot of X's here. Low debt, cash flow growth, net income growth, revenue growth, high fiveyear PE, high fiveyear price of free cash flow, low returns on capital. Shares outstanding are up. This is something to consider. There are X's here. I'm not as worried about this one. The 5year free cash flow is a lot lower than their last year free cash flow. Shares outstanding is not up a ton. return on capital is a little bit of more of an issue. Let's see what the 10-year return on capital for Service Now is. We'll see that here real quick. Oh, it's actually negative and getting better. All right, so let's see what analysts think. Analysts see a doubling of profit in the next four years. 19% 33% 11% 13 and 20%. A lot of growth there. What about revenue? 20% 18. 5 19 18 and a half 19 and a half. Doubling in revenue over the next four years. doubling its revenue for the next four years. Guys, I'm not going to make that kind of assumption. That's what's incredible here. So, if I go to stock analyzer and I pull out the last time I did service now, I just did it last week guys, I actually did 9, 13, and 17% revenue growth. I did profit margin and free cash flow of 30, 33, and 36. I did a PE of 16, 19, and 22 and my 9% desired return. Guys, I could lower all these. Let's see what it says right here. Right now, based on our anal analyzing it right here, I have a low price of 95, high price of 260, middle price of 160 based on my middle assumptions. So guys, the point is we're looking here going, "Yeah, this is a 15% return based on today's price. Is that enough juice for the squeeze? Is that enough margin of safety? " You have to ask yourself how much you believe AI will really change all these businesses. And by the way, you might sit there and say, "Paul, I don't know which ones they will, but I don't think SAS is going away. " Then maybe you buy a bunch of SAS companies that make sense. Make your own ETF in this. Now, I do have a video for you to watch right now. I picked seven stocks that I believe will beat the Magnificent Seven over the next decade. We just dropped one with a one-year update recently, and the results may surprise you. So, click the video on your screen right now. Thank you for your time.