Serenity: AI Causes Valuation Mismatch, Changing Value Investment Logic

Serenity stated on platform X that traditional value investing has entered a "hibernation period." In the past, investors sought companies with a price-to-earnings ratio of 10 to 12 times, which had slow growth but relied on cash flow for buybacks and dividends. Now, there are companies in the market with a price-to-earnings ratio of only 1.8 times and a year-on-year revenue growth of 605.24%. Investors are primarily focused on the duration of growth. Additionally, Japan's Sumitomo has a price-to-earnings ratio of 16.2 times but holds long-term agreements with numerous large-scale cloud service providers in the AI sector. Serenity believes that AI has created a greater valuation mismatch in the medium term, causing "value investing" to gradually shift towards high-growth "deep value" companies.

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