This week's valuation sweep surfaced five names where discounted cash flow estimates are materially dislocated from current pricing—signals that tend to emerge when capital rotates and models lag price action.

Rather than relying on backward-looking multiples, this screen leans on intrinsic value via FMP's DCF Valuation API to surface underpriced cash flow streams that the tape hasn't fully priced in.

DCF Screen: This Week's Highest-Conviction Outliers

1) Assurant Inc (NYSE:AIZ)

• DCF Value: $1199.10
  
  
• Market Price: $209.11
  
  
• Upside Potential: ~473%
  
  

Assurant screens as the outlier this week, with a DCF gap so extreme it suggests either a dramatic underpricing or a structural dislocation in valuation assumptions. With a business model tied to specialty insurance and device protection programs, the market may be assigning a low multiple due to perceived cyclicality.

What makes AIZ notable from a signal standpoint is the mismatch between cash flow durability and sentiment. Analysts have quietly been lifting FY EPS expectations in the last 60 days while the stock has barely moved.

If capital rotates back into yield-generating financial names, AIZ has the kind of compressed valuation profile that screens well in quantitative factor models.

2) Omnicom Group Inc (NYSE:OMC)

• DCF Value: $174.17
  
  
• Market Price: $77.52
  
  
• Upside Potential: ~124.7%
  
  

Omnicom's upside signal comes at an interesting moment for agency networks. Ad spend outlooks have been revised upward for 2025 following improving digital CPM stabilization, but legacy holding companies like OMC haven't fully reflected that shift in forward multiples. This wedge between modeled cash flows and market price suggests sentiment is lagging hard data.

3) Tyson Foods Inc (NYSE:TSN)

• DCF Value: $111.27
  
  
• Market Price: $52.48
  
  
• Upside Potential: ~112%
  
  

Tyson's signal reflects a market still pricing in protein margin compression even as feed costs ease and volume demand stabilizes. The company's last earnings call hinted at operational efficiency gains and pricing normalization. If hog and cattle futures continue easing into Q4, TSN could show expanding free cash conversion ahead of consensus.

4) Skyworks Solutions Inc (NASDAQGS:SWKS)

• DCF Value: $147.79
  
  
• Market Price: $75.32
  
  
• Upside Potential: ~96.2%
  
  

Skyworks sits at the intersection of two narratives: slowing handset cycles vs. rising RF content per device. The market has focused on the former, but DCF models seem to be pricing in a more normalized demand curve aligned with 5G device refresh and diversification into IoT and automotive connectivity.

Furthermore, several hedge funds have recently added small positions in RF component suppliers, hinting at early rotation back into the semiconductor stack beyond just AI beneficiaries.

5) Target Corporation (NYSE:TGT)

• DCF Value: $170.42
  
  
• Market Price: $90.84
  
  
• Upside Potential: ~87.6%
  
  

Target's upside gap is notable given retail has been a consensus underweight in discretionary portfolios over the past two quarters. Yet recent traffic data and improving inventory positioning suggest the company may be exiting its margin reset phase earlier than expected.

Target's valuation signal isn't just about mean-reversion — the company has been rebalancing category mix toward higher-margin private label and essentials, which could steadily lift trailing EBITDA margins.

Reading the Gap

A four- to fivefold gap like we see in Assurant is rare, but across all five names a common thread emerges: the market is still trading on trailing narrative rather than forward cash generation potential. This is where a DCF screen becomes more than a valuation check — it becomes a sentiment divergence indicator. And it's worth remembering — as outlined in FMP's DCF Methodology piece — that there isn't just one DCF. Whether you're modeling levered vs. unlevered cash flow, adjusting terminal assumptions, or treating buybacks as capital return or residual value, each variation frames “intrinsic value” differently — and that framing shapes how you read a gap like this.

When price dislocation shows up simultaneously in financials (AIZ), legacy media (OMC), defensives (TSN), semis (SWKS), and discretionary retail (TGT), it suggests something broader: capital rotation might be forming beneath the surface, but conviction hasn't yet caught up to modeled fundamentals.

To sort signal from noise, DCF alone isn't enough. Cross-referencing these upside candidates with FMP's Financial Statements APIs to observe margin inflection trends, and pairing it with Key Metrics endpoints (EV/EBITDA, Free Cash Flow Yield) lets you see whether operational leverage is beginning to reassert despite lagging price momentum. For conviction-building, overlaying Financial Estimates API with DCF outputs helps determine if the street is quietly revising higher while equity pricing remains stale — a classic setup for delayed reratings.

Finally, conviction rises when fundamental upside aligns with positioning and insider behavior. A quick pull from Latest Insider Trading API can validate whether company leadership and capital allocators are acting on the same dislocation highlighted by DCF spreads. When upside potential, capital behavior, and improving operational data begin to converge across multiple APIs, the gap stops being theoretical — it becomes a tradable signal.

When building that kind of multi-signal framework, the breadth of datasets listed on FMP's homepage becomes less a menu of endpoints and more a reference map for stitching together valuation, behavior, and flow data into a coherent screening logic.

Automating Intrinsic Value Tracking with the FMP DCF Valuation API

Instead of pulling valuations one name at a time, FMP's DCF endpoint makes it possible to systematize the process and surface dislocations automatically.

Step 1. Call the DCF Valuation API

Use your ticker of interest:
https://financialmodelingprep.com/stable/discounted-cash-flow?symbol=AAPL&apikey=YOUR_API_KEY

Sample response

[

{

"symbol": "AAPL",

"date": "2025-02-04",

"dcf": 147.27,

"Stock Price": 231.80

}

]

Step 2. Calculate Upside Percentage

With those two numbers in hand, calculate the percentage gap using:

Upside % = (DCF - Stock Price) / Stock Price × 100

In the sample above, the result is roughly -36%, indicating the stock is trading above the model's fair value estimate.

Step 3. Build a Screening Loop for Opportunities

Apply that same calculation across a broader ticker list and sort the output by positive upside to surface potential mispricings.

Scaling Your Valuation Workflow

Begin with the Basic plan to trial the process on a small watchlist. Once you're ready to expand coverage to the full U.S. universe and access longer historical depth, the Starter tier becomes the practical next step. Teams running structured screens across multiple regions or requiring higher throughput typically move to Premium plan, which adds U.K./Canada coverage and increases call capacity for continuous valuation runs.

From Analyst Script to Firmwide Signal Infrastructure

What starts as a one-off analyst script becomes far more powerful when the output is centralized rather than living on individual machines. Once DCF signals are fed into a shared dashboard alongside Financial Statements, Key Ratios, and Analyst Estimate data, valuation logic stops being a personal model and becomes part of the firm's core decision system. Research, PM, and risk teams gain access to the same synchronized dataset, reducing interpretation drift and keeping discussions anchored to a consistent set of numbers.

For desks looking to formalize that workflow, FMP's Enterprise Plan provides the infrastructure layer needed for version control, auditable assumptions, and governance around model changes — enabling analysts to move from building isolated tools to shaping a standardized valuation signal that scales across the organization.

Turning Valuation Data into Investment Signals

Once the valuation gaps are quantified through FMP DCF Valuation API, the real edge comes from tracking how those gaps evolve as fundamentals and sentiment shift. Treated as a live signal rather than a static snapshot, DCF variance becomes a forward-looking tool for idea generation and risk calibration.

Expand your watchlist with our previous deep dive: 4 Companies Boosting Dividends — Smarter Way to Monitor Them with the FMP API.