The time to buy shares is when they’re undervalued. But how do investors know when that is?  The answer is with a discounted cash flow (DCF) analysis. And one tech stock stands out to me right now.

A DCF calculation is a good way to value a business. It tells investors how much a stock is worth given certain assumptions. The calculation computes a value for a stock based on its future cash flows and a desired rate of return.

But that’s not all. Investors can also use the current share price and a rate of return to calculate implied future growth. And that’s what I’ve been doing.

Falling share prices imply lower growth forecasts. And this is what has been happening with software…