Extraordinary Moves of November 9, 2020
A quick look at some of the huge moves in the market yesterday on news that a viable vaccine for Covid-19 is on the horizon. Small cap value was up during the 2000 bubble pop […more]
Commentary
Economic Margin Valuation™ – 25 Years Later
In October 1995, Dan Obrycki and I started Applied Finance. As we struggled to solve several valuation problems back then, we did not know that we would ultimately create and manage the Valuation 50, one […more]
AFG Quantitative Review – Q3 2020
The transition into Q4 is accompanied by a notable milestone. The Applied Finance Group turns 25 years old today! We want to take this opportunity to thank our research partners that appreciate the merit of […more]
Valuation Dividend – Q3 Strategy Letter
The 10 Yr. US Treasury yield ended the quarter flat at around 0.66%, though dipped to nearly 0.51% in early August. In July, headlines about rising Covid-19 infection rates in the US crowded the outlook […more]
Looking Backward and Forward – Q3 2020 Review
In the spring and early summer, many were baffled how the equity market could engineer such a rally while the US economy was still free falling into a pit of fast declining consumption and a […more]
Market in Pictures – September 2020
For September 2020, we have put together some visual highlights of the state of markets over the past month. We touch on energy stocks, European banks getting crushed, insights on value investing and a humorous […more]
Analyst Interview – Dhaval Sanghavi CFA, CPA gives his thoughts on Technology Sector
Valuation Edge® Analyst Interview Series Dhaval Sanghavi CFA, CPA Senior Fundamental Analyst, Partner, Applied Finance Dual B.S. from the University of Illinois at Urbana-Champaign The Valuation Edge® Analyst Interview Series seeks to pick the brains […more]
Small Cap Growth: Most Expensive Valuation Since Tech Bubble
This is a follow up piece to a recent article focusing on large cap stocks. This commentary will instead look at small cap value/growth relative attractiveness, as well as compare large and small caps. The […more]
Valuation Analysis – Time to Reconsider Large Cap Value & Growth Allocations
Applied Finance has calculated Valuations of major indices on a monthly basis since September of 1998. Calculating the Intrinsic Value upside/downside of every company in an index such as the Russell 1000, we can then […more]
Book/Price – A Broken Factor
In the past 5-10 years, investors have seen drastic underperformance from traditional value factors. Russell style indices, which use sales growth, earnings growth, and book/price to determine value and growth, have seen a strong divergence in performance since the 2008 recession. Let’s examine Russell Value/Growth Anomalies, Share Repurchases and Intellectual Assets.
[…more]