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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]

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]

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]

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]

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]

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]

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]

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.
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The reign of Tim Cook at apple has been extraordinary with the company’s valuation growing 5x larger on his watch. Deservedly, there has been little criticism of the cash returned through stock buybacks (~$340 Billion […more]

Recent reports attribute the market’s recent melt-up to option buying activity from Japanese institutional giant SoftBank and unsophisticated American traders using the new commission free platform, Robinhood. Without divining on whether these explanations are clever, […more]