We introduce discounted alphas, a novel framework for equity valuation. Our approach circumvents the need for stock-level cost-of-equity estimates required in discounted cash flow (DCF) valuation and identifies economically important variation in fundamental value not captured by best-in-class DCF methods. We find that discretionary buy-and-hold funds tilt toward characteristics that predict underpricing but not short-term alphas and that private equity funds appear to capture substantial CAPM misvaluation, both initially at buyout and subsequently at exit. However, despite these pockets of misvaluation, we find that firm equity values are "almost efficient" by Black's (1986) definition.