There are many companies with poor fundamentals that are seemingly undervalued for right reasons. The primary task of the investor is to consider if the stock has good fundamentals to begin with and then consider valuation. 

We have encapsulated the essence of this approach through a rules-based strategy which seeks to identify quality companies that are relatively undervalued compared to others. Quality aspect is measured on multiple dimensions such as low financial leverage, clean accounts and consistency of profitability.