These days the Bloomberg terminal has the functionality to do all the hard bottom-up valuation work for analysts, so that is left for the analyst to do is analysis at a market level, argues Vincent Deluard in another excellent piece from INTL FC Stone. Analyzing the discounted cash flow models of the 50 largest US stocks, plus the FAANG, Deluard discusses his inputs and Bloomberg math which suggests a 15% overvaluation in US large cap stocks. While, many backward-looking valuation measures support this overvaluation, it is still possible to find value in large caps, concludes Deluard. As for the FAANGs, except for Apple and, to a lesser extent, Google, the market seems to have blindly accepted analysts’ rosy premises for their double-digit growth in the next five years, and a terminal growth rate that is double that of the US economy. In 2018, investors would be well-advised to ‘’check your premises,’’ says Deluard.