Even if a stock is undervalued, you need to know how it compares to alternative investments. Therefore, the long-term investment potential of every stock is compared to an investment in AAA Corporate Bonds. An indicator called Relative Value, RV, reports the result of this comparison. The investment potential of a stock is favorable compared to AAA Corporate Bonds when Relative Value is above 1.00 on a scale of 0.00 to 2.00. When Relative Value is below 1.00, it’s better to buy AAA Corporate Bonds. The chapter entitled High Growth vs. Low P/E Stocks in Dr. DiLiddo’s book, Stocks, Strategies and Common Sense, gives more information on how Relative Value is determined.