Passive investing is distorting stock valuations by driving capital flows based on narratives rather than fundamentals. The article argues that many so-called ‘value’ stocks are actually expensive, while true value opportunities exist in overlooked companies. Using a three-tier valuation framework (past earnings, forward earnings, and growth-adjusted valuations), the author identifies genuinely undervalued stocks like Phillips 66, Delta Air Lines, and United Airlines, while cautioning that traditional value metrics can mask value traps.