Short Term trading Week Starting: 17 July, page-253

Hope I got the question right.
Valuation(example- DCF) is done and then compared to mc.
If the stock is undervalued it's a buy.

Popular valuation methods are not useful in valuing a spec stock( oftentimes market sentiment decides the value). So peer comparison is a better way to go.
Cash(cash flow) is king in the spec space. So yes NPV (inflow-outflow)is handy.
I look for the source of the inflow+how it's spent+how much is left.