@kaizen_investorJan 7, 2026 · 9:04 PM

9/10 Copart, $CPRT, is a global leader in online vehicle auctions and remarketing services, specializing in the sale of used, wholesale, and salvage-title vehicles to a diverse base of dismantlers, dealers, and exporters. According to the reverse DCF analysis, investors are expecting the FCF of $CPRT to grow with 12.39% in the upcoming 10-years. Copart has proven to be able to grow the FCF with a 10-year CAGR of 26.6% with a standard deviation of 36%.

@kaizen_investorJan 7, 2026 · 9:04 PM

The 10 Most Undervalued Quality Companies of 2026 according to the reverse DCF! Each year I run a reverse DCF analysis on around 250 companies. The goal of a reverse DCF is to see how much free cash flow growth the market is pricing in. I compare these to the 10- 5- and 3- Year FCF CAGR to see if investors are expecting the company to do worse or better than the previous years. There are 3 rules: 1. The FCF should be positive in at least 8 of the last 10 years. 2. The FCF should be positive in the last year. 3. The standard deviation of the FCF should be less than 40%. According to this analysis the 10 most undervalued companies of 2026 are: $DTE: Deutsche Telekom $VEEV: Veeva Systems $KSNL: Kinsale Capital $CRM: Salesforce $CDI: Christian Dior $PAYC: Paycom $ADBE: Adobe $PANW: Palo Alto $CPRT: Copart $MA: Mastercard Do you own any of these undervalued companies? If you want to know more, please read the thread 🧵