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August 20, 2019

The Valuation 50 is an investment strategy composed of a focused group of 50 stocks designed to consistently outperform the S&P 500 index in a tax efficient manner.

The Valuation 50 is managed by a team of analysts who conduct a systematic process that combines fundamental and qualitative research work, with valuation as the core guideline.  In sum, the Valuation 50 aims to identify high quality and undervalued companies, which have the capacity and potential to thrive in economic cycles and outperform the overall market through an extended holding horizon.

Valuation 50
Performance Sources: Morningstar and Zephyr

The Valuation 50 portfolio is sector neutral to the SP 500, and the securities within each sector of the portfolio are equal weighted.  Further, within each sector the holdings are selected to minimize correlated returns as much as possible.

Valuation Driven Investment Process 

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. The undervalued securities identified from this process are then evaluated on the basis of additional proprietary Applied Finance metrics and/or by an analyst team to determine the securities most likely to outperform the benchmark. In addition to valuation, Applied Finance has identified Management Quality, Earnings Quality, Operating Momentum, and Price Momentum as additional important factors to explain future stock returns.

NEXT: Valuation Dividend Investment Strategy


The Valuation 50 is an investment portfolio designed to track the performance of a basket of stocks selected by Applied Finance.  The Valuation 50 is a copyrighted product of Applied Finance, and may not be reproduced or used in any manner whatsoever without the prior express, written consent of Applied Finance.

Performance numbers represent past performance and may not be indicative of future returns.  Performance is net of fees and assumes reinvestment of all dividends and capital gains. Past performance is no guarantee of future results. 

References to stocks held in the Valuation 50 are for informational purposes only and do not constitute and offer to buy or sell any security.

The information and data contained in this presentation were obtained from sources deemed to be reliable, but Applied Finance makes no guarantee as to the accuracy or completeness of any such information or data.