Value Investing Research

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Is value dead? Has the story changed? No.

By |2020-06-01T09:30:54-04:00June 1st, 2020|Research Insights, Basilico and Johnsen, Academic Research Insight, Value Investing Research|

Is (systematic) Value Investing Dead? Ronen Israel, Kristoffer Laursen and Scott RichardsonWorking Paper, published at aqr.comA version of this paper can be found hereWant to read our summaries of academic finance papers? Check out our Academic [...]

Compound Your Knowledge Ep 29: What’s the Story Behind EBIT/TEV?

By |2020-05-19T10:48:00-04:00May 19th, 2020|Compound Your Knowledge, Research Insights, Podcasts and Video, Media, Value Investing Research|

This week we discuss Ryan's article examining the Enterprise Multiple, EBIT/TEV, or Earnings Before Interest and Taxes (EBIT) divided by the firm's Total Enterprise Value (TEV). Article Links: What's the Story Behind EBIT/TEV [...]

Absolute Value Versus Relative Value: A Quick Note on the Value Debate

By |2020-05-11T11:05:52-04:00May 11th, 2020|Factor Investing, Value Investing Research|

We've saw a spike in questions the last few days related to the various "value is really cheap posts" coming into the mainstream. This conversation was elevated after Cliff Asness posted the best piece of [...]

Cheap vs. Expensive Factors: Does Valuation Matter for Future Returns?

By |2020-05-05T08:28:30-04:00May 5th, 2020|Research Insights, Factor Investing, Guest Posts, Value Investing Research, Momentum Investing Research, Low Volatility Investing|

Tesla (TSLA) breached the $100 billion market capitalization in January 2020 and became the most valuable car manufacturer globally. However, valuing the company is challenging given the growth profile, complexity of the business, and erratic [...]

How Cheap (or Expensive) Are Value Stocks?

By |2020-04-14T09:34:57-04:00April 14th, 2020|Research Insights, Value Investing Research, Tactical Asset Allocation Research|

What are the two most annoying words in forecasting? IT DEPENDS. In this piece we look at the "value" of value, which has been beaten down recently. A few questions arise in this scenario: How [...]

Compound Your Knowledge Ep 27: Value, Momentum, and Low Volatility

By |2020-03-30T10:15:05-04:00March 30th, 2020|Compound Your Knowledge, Research Insights, Podcasts and Video, Media, Value Investing Research, Momentum Investing Research|

In this video, we examine two articles highlighted on our site. The first article, written by Larry Swedroe, examines the Value and Momentum performance over the past two years ( highlighting great research by the [...]

Is There Something Wrong with the Value Premium?

By |2020-03-24T12:13:15-04:00March 24th, 2020|Research Insights, Factor Investing, Larry Swedroe, Value Investing Research|

The dramatic underperformance of the value premium since 2018, among the largest drawdowns in history, has led many to question its existence. It is certainly possible that what economists call a “regime change” could cause [...]

The Use and Value of Financial Advice for Retirement Planning: Part 1/2

By |2020-03-17T08:19:27-04:00March 17th, 2020|Financial Planning, Research Insights, Factor Investing, Basilico and Johnsen, Academic Research Insight, Value Investing Research|

The Use and Value of Financial Advice for Retirement Planning W.V. Arlow, K.C. Brown, and S.E. JenksJournal of Retirement, Winter 2020A version of this paper can be found hereWant to read our summaries of academic finance [...]

Low Volatility-Momentum Versus Value-Momentum Factor Portfolios

By |2020-03-13T11:40:42-04:00March 13th, 2020|Factor Investing, Guest Posts, Value Investing Research, Momentum Investing Research, Low Volatility Investing|

Boring versus Cheap Winners

The Massive Performance Divergence Between Large Growth and Small Value Stocks

By |2020-02-21T12:04:41-05:00February 21st, 2020|Research Insights, Factor Investing, Larry Swedroe, Value Investing Research, Size Investing Research|

From 2017 through 2019, the Russell 1000 Growth Index returned 20.5 percent per annum, outperforming the Russell 1000 Value Index, which returned 9.7 percent, by 10.8 percentage points a year; and the Russell 2000 Growth [...]

Factor Investing Update: An Analysis of 2019 International Factor Returns

By |2020-02-19T10:17:00-05:00February 19th, 2020|Research Insights, Factor Investing, Value Investing Research, Momentum Investing Research|

Last week I summarized the 2019 factor performance for U.S. stocks. A natural follow-up question was the following--"what about International stocks?" A great question. So below I dig into the 2019 performance for International Factor [...]

Enterprise Multiples and Expected Stock Returns

By |2020-03-06T10:04:29-05:00January 21st, 2020|Financial Planning, Research Insights, Factor Investing, Basilico and Johnsen, Academic Research Insight, Value Investing Research|

Why Do Enterprise Multiples Predict Expected Stock Returns? Steve Crawford, Wesley Gray and Jack VogelJournal of Portfolio Management, forthcomingA version of this paper can be found hereWant to read our summaries of academic finance papers? Check [...]

Asset Allocation vs. Factor Allocation—Can We Build a Unified Method?

By |2019-12-30T11:25:44-05:00December 30th, 2019|Research Insights, Factor Investing, Basilico and Johnsen, Academic Research Insight, Value Investing Research|

Asset Allocation vs. Factor Allocation—Can We Build a Unified Method? Jennifer Bender, Jerry Le Sun, and Ric Thomas Journal of Portfolio Management A version of this paper can be found here Want to read our summaries [...]

Improving the Performance of Deep Value Strategies

By |2019-12-10T19:32:32-05:00December 12th, 2019|Research Insights, Factor Investing, Larry Swedroe, Value Investing Research|

A large body of evidence demonstrates that investment strategies focused on buying stocks that are cheap relative to measures of fundamental value have achieved higher long-term returns than the broad market. Motivated by such legendary [...]

Forbidden Knowledge: Long-Only Academic Factors are Also Cool

By |2019-11-27T09:31:15-05:00November 27th, 2019|Research Insights, Factor Investing, Value Investing Research, Momentum Investing Research, Low Volatility Investing|

When Equity Factors Drop Their Shorts David Blitz, Guido Baltussen, and Pim van Vliet Working Paper A version of this paper can be found here Want to read our summaries of academic finance papers? Check out [...]

Enterprise Multiples and Equity Country Allocations

By |2019-11-25T08:08:33-05:00November 25th, 2019|Research Insights, Factor Investing, Basilico and Johnsen, Academic Research Insight, Value Investing Research|

And the Winner Is…A Comparison of Valuation Measures for Equity Country Allocation Adam Zaremba and Jan Jakub Szczygielski Journal of Portfolio Management A version of this paper can be found here Want to read our summaries [...]

Are Value, Carry and Momentum Regime Dependent?

By |2019-11-05T08:12:33-05:00November 21st, 2019|Research Insights, Factor Investing, Larry Swedroe, Value Investing Research, Momentum Investing Research|

Over the past decade academics and practitioners alike have argued that multi-factor portfolios offer significant benefits to investors looking for enhanced and more diversified solutions. Among the papers making this argument is “The Death of [...]

Dividends are Different

By |2020-04-17T16:11:58-04:00November 20th, 2019|Dividends and Buybacks, Research Insights, Guest Posts, Academic Research Insight, Value Investing Research|

There has been abundant discussion regarding the utility of dividends.Here are a few examples: dividends, dividends, and more dividends…and Jon See'ds piece on buybacks, if you'd like to go down that rabbit hole. Many [...]