Valuation Driven™ investing begins and ends with calculating the intrinsic value of every stock in a benchmark against which a portfolio is constructed, and comparing those values against traded prices.
All of Applied Finance’s portfolios are Valuation Driven™, which differs significantly from traditional “value” approaches that rely on noisy accounting data and cheapness multiples.
Leverage Applied Finance world class research to:
- Gain market intelligence.
- Stand out as an advisor and attract new clients.
- Enhance interactions and communication with existing clients.
- Have deeper understanding and insight into the Applied Finance portfolio construction process.
Topic: Strategy Review: Valuation 50 and Valuation Dividend Stock Selection Process
Speaker: Jun Wang, MBA, CFA – Partner and PM/Analyst
When: June 4th, 2020 03:00 PM Central Time (US and Canada)
Why Join: Get in-depth look at the “ how and why” stocks are added or sold from the Valuation 50 and Dividend strategies.
Topic: Deconstructing Value Investing (Please email firstname.lastname@example.org if you would like to join)
Speaker: Rafael Resendes – Founding Partner and CIO
When: June 11th , 2020 03:00 PM Central Time (US and Canada)
Why Join: Understand when value investing fails.
“Value Investing” is commonly misunderstood as buying companies at a discount to their intrinsic value. While that may have been true decades ago, today “Value Investing” predominantly consists of buying “low price to something” stocks. The “something” is a fundamental variable such as book value, earnings, and/or sales among others. However, such approaches do not necessarily identify undervalued stocks, only stocks that are “cheap” relative to the chosen fundamental variable.
An important, but unstudied issue for practitioners and academics to understand is:
• Do cheapness strategies independently generate excess returns? Or
• Are cheapness strategies simply correlated to intrinsic value, which generate excess returns?
Drawing from over 20 million real time valuations performed by Applied Finance since 1995, we explore this issue in depth.