How to Check if a Stock Is Cheap or Expensive

Step 1: Open the stock page

Go to yrobot.us/stocks/AAPL and swap in your ticker. No account is needed for the main readings.

Step 2: Read the fair value gap

The fair value estimate compares the current price with ŷRobot's model estimate. A negative gap (for example -5.4%) means the price sits below the estimate; a positive gap (for example +10.8%) means it sits above. Check the "as of" date: a stale estimate counts for less.

It is not a price target. It is the model's second opinion on current valuation, and models are wrong sometimes. Treat the gap as one input.

Step 3: Check the AI score

The AI score (0 to 100) blends the fair value gap, seasonal forecasts, fundamentals, analyst consensus, the earnings beat streak and a volatility penalty. The AI score guide lists the exact shares.

Use the score to rank stocks, not to rate them. A 20-point gap between two stocks matters; a 3-point gap is noise.

Step 4: Compare the P/E ratio with its own history

The P/E ratio shows how much the market pays for each dollar of earnings. Below its own 5-year average, the stock is cheaper than usual; above it, more expensive than usual.

A higher P/E is not "bad" if earnings growth justifies it.

Step 5: Look at sector context

Open the sector list (for example /stocks/sector/technology) to see where your stock sits. Is it cheaper or more expensive than its peers? Is the whole sector trending cheap or expensive?

Step 6: Write down what changed

If you checked the stock last month, compare the fair value gap, the AI score and the P/E. If only one factor moved, treat the result as weak. If several moved together, the reading is stronger.

What this can't tell you

Which stock performs better next week, whether the estimate is right this time (sometimes it is very wrong), or that a cheap stock goes up and an expensive one goes down.

ŷRobot is an analysis tool, not financial advice. Estimates can be wrong and past patterns may not repeat.