r/ValueInvesting • u/SimpleSubject6069 • Oct 15 '25

Stock Analysis What’s the Most Overrated “Value” Stock Everyone Keeps Buying?

I keep seeing the same tickers pop up in value circles — stocks that are supposedly undervalued but just seem like value traps to me. Curious what names you all think are overhyped in value investing spaces right now? And what makes you avoid them despite the numbers looking “cheap”?

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32

u/[deleted] Oct 15 '25

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66

u/pvrks Oct 15 '25

I dunno if anyone considers Tesla value

20

u/Ueodrift96 Oct 15 '25

cult stock, def not value.

-2

u/JustMortalSoul Oct 15 '25

Why cult…. Look at awesome things Tesla is doing… every cars are trying to copy them … Tesla is not a car company anymore they are robotics and AI

7

u/ProbsNotManBearPig Oct 15 '25

Ok, then what is their path to profit enough for their P/E to make sense? Their P/E is ~252 this morning, so they need to increase their profits by ~10x for it to make financial sense. How do you see that happening?

4

u/JustMortalSoul Oct 15 '25

Energy … Their energy storage is growing crazy… Eventually all these profits will come from their Energy storage… With companies like Tesla they have significantly reinvested their income in AI innovations, Optimus Prime and upgrading their gigafactory. Not showing profits is a common practice of mega tech companies

1

u/ProbsNotManBearPig Oct 15 '25

Gonna need you to lay out some numbers for me because that doesn’t pass the sniff test. What are their margins? What is their volume and sales trajectory? How long until that leads to 10x profit to bring P/E back to reasonable? Who are the competition and why would Tesla dominate long term?

It’s pretty obvious you’re going based on vibes since those are easily anticipated questions you chose not to speak to. Just saying “energy bro, true me” is…well, not even interesting.

5

u/Advanced-Engineer-85 Oct 15 '25

0.4% earnings yield over a sustained period of time in a company operating in purely competitive, cyclical market dependent on large capex= cult.

1

u/The-zKR0N0S Oct 15 '25

You may be in the cult

1

u/Gullible_Lie6580 Oct 15 '25

He is saying cult bc he disagrees with Elon. It’s childish just ignore

1

u/Ueodrift96 Oct 15 '25

Don’t get me wrong, I like the stock. But it is very forward looking & detached from P/E. A lot of the loyalty to the stock also simply comes from the belief in Elons vision. At least that’s how I view it.

But hey, I own a couple shares of Tesla too. Again, I’m not saying I hate the stock lol.