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Applied Finance, a thought leader in valuation and portfolio construction, is a true “value” investment management company.  Unlike the majority of firms today that focus on low multiples to define “value”, we define value as identifying companies trading below their intrinsic value.  Our Valuation Driven® approach forms the foundation of our investment decisions.

 

Applied Finance is 100% employee owned, with the average tenure of our 10 equity partners being over 18 years.  Learn more about Applied Finance.

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RECENT COMMENTARY

  • Intrinsic Value in Passive Indexing

    June 15, 2021

    While Applied Finance has long advocated for investors to consider the strategic advantages from incorporating a valuation-based discipline in portfolio construction and stock selection, this study provides compelling evidence that even passive allocations benefit when index weights are formed on intrinsic value characteristics instead of using market cap as a proxy. […more]

  • Implied Sector Expectations

    Valuations in the Energy & Utility Sectors

    June 2, 2021

    Looking at the most recent aggregate Valuation data, both the Russell 1000 and Russell 2000 look expensive relative to their long-term levels. On a sector basis, large and small cap Energy stocks, and large cap Utility stocks all seem attractive, while small cap Utilities appear expensive. […more]

  • The Poor Valuation Characteristics of Dilutive Stocks

    May 12, 2021
    The market prices of practically all individual stocks have covered a lot of terrain since the start of 2020, accompanied by a deluge of new information for investors to consider.  These considerations include new operating [...more]

  • Tactical Valuation Update – May 2021

    May 11, 2021
    Applied Finance will continue to monitor and report aggregate market valuation characteristics to help our research partners allocate capital in the current US equity landscape.  This update reflects aggregate valuation characteristics based on 4/30/21 closing [...more]

  • Navigating the Current Equity Landscape

    May 7, 2021
    Navigating the Current Equity Landscape with an Emphasis on High Profits and High Growth Reopening and inflationary themes conjure many competing narratives on the proper way to build portfolios or allocate capital in preparation for [...more]

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