Alpha Spread

Alpha Spread

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Alpha Spread is a stock valuation platform that computes intrinsic value (DCF and relative), offers automated and manual analysis, evaluates fundamentals, and tests valuation signals vs forward returns.

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Alpha Spread is a stock valuation platform designed to help investors identify undervalued and overvalued stocks through automated intrinsic valuation models and comprehensive fundamental analysis. The platform combines quantitative analysis with market data to provide actionable insights for investment decisions.

The platform's core functionality centers on valuation signal testing, which evaluates whether stocks identified as undervalued by its models tend to deliver better forward returns compared to overvalued stocks. This approach is grounded in rigorous backtesting across large stock samples using forward-looking data rather than historical in-sample fit. According to the platform's validation metrics, its valuation signals demonstrate a correlation of 0.3204 with 12-month forward returns, a quintile spread of 28.3%, and a directional hit rate of 65.1%, indicating accuracy well above random chance.

Key features include automatic intrinsic valuation that calculates estimated fair values for stocks, Wall Street estimates integration for comparing analyst consensus with the platform's assessments, and comprehensive fundamental analysis tools for evaluating company financials and performance metrics. The platform employs multiple analytical lenses—examining correlation, portfolio spreads, directional accuracy, tail risk, and cross-model agreement—to reduce the influence of outliers and provide robust results.

Alpha Spread serves investors seeking objective valuation analysis by continuously running quality checks on its signals and presenting results in plain-English explanations of the metrics used. The platform emphasizes transparency about its methodology and acknowledges realistic limitations, such as the fact that undervalued stocks may continue declining before recovering. This focus on evidence-based valuation testing makes it suitable for investors who want quantitative support for identifying stocks with favorable risk-reward characteristics.

Website: alphaspread.com

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