Valuation Driven

Corporate Performance and Equity Valuation
#valuationdriven

[Saul Marquez @PositivelySaul]

Fun research from @AppliedFinance
Here is why you want to avoid overvalued and wealth destroying companies.

They both create a lot havoc in your portfolios.

[Rafael Resendes @rresendes]

I’m honored, by the confidence GPIF placed in AFCM and our Intrinsic Value Driven©️framework to select us as one of their active managers. Amazing peer group.

So easy to ignore our track record being small and undiscovered but they didn’t. Grateful. 🙏

https://t.co/UYfFUZpA7S

[Applied Finance @AppliedFinance]

Valuation Beta: 2022 Update

We have updated our Valuation Beta asset pricing research with data through June 2022.

A new study feature aligns calendar year factor returns with core, value & growth benchmarks to visualize performance paths of each factor over the past 23+ years.

[Applied Finance @AppliedFinance]

UBS Trending 🚨 Interview with Rafael Resendes

Karen Sunderam, Head of Inclusive Investing @UBS, sits down with @rresendes, Applied Finance Co-Founder, to discuss resilience, reinvention, and diverse perspectives in business. #UBSTrending #ShareUBS

https://t.co/q9SPuEDlt3

[Applied Finance @AppliedFinance]

The most compelling things happening in global markets and policy in one thread! 🧵

@PaulBlinn shares with us some of the more interesting tweets and articles he has run across in the past month or so.

We call it “Market in Pictures” 📈📸

Enjoy!

[Applied Finance @AppliedFinance]

Common Valuation Mistake: 🛑

Ignoring the Wealth Creation Effect

A thread 🧵 on a popular misconception in the finance industry

[Applied Finance @AppliedFinance]

4 GLARING problems with most DCF analysis (common valuation models)

Hint… the problem is in the perpetuity assumption.

Plus, you’ll learn how we correct these issues.

A thread🧵

[Applied Finance @AppliedFinance]

Common Valuation Mistake:

Ignoring the impact of inflation on ROIC profit measures.

Most profitability metrics simply divide the income statement or cash flow statement by the balance sheet.

Here's how you fix it:

[Applied Finance @AppliedFinance]

Common Valuation Mistake:

Ignoring the economic impact of R&D misrepresents corporate performance & intrinsic value.

[Lu Zhang @zhanglu_osu]

Their wealth creation factor makes eminent sense to me… In the investment CAPM, the relation between expected investment and expected return is also positive… Our 2019 RoF article contains the details… Controlling for current investment yields our expected growth factor…

[Applied Finance @AppliedFinance]

Graduate students at the Università delle Svizzera italiana in Professor @FranzFranzoni Investment Analysis course identified Swiss firms with interesting catalysts and then identified the most undervalued using Applied Finance valuation tools.
https://t.co/DE5A8PGKvi
#Valuation

[Corey Hoffstein 🏴‍☠️ @choffstein]

Nice new paper from @rresendes on the Wealth Creation Effect

Operators view reinvestment as positive for wealth creation.

Factor research suggests the opposite.

The paper seeks to reconcile this via the interaction of profitability and investment.

https://t.co/alCGmvUTp3

[Francesco Franzoni @FranzFranzoni]

My new paper on the Wealth Creation Effect in Stock Returns, with D. Obrycky and R. Resendes @rresendes, is out: https://t.co/UMkFLOZG7A
Profitability and investment interact positively in predicting stocks returns, reversing the negative effect of investment. Comments welcome.

[Applied Finance @AppliedFinance]

Applied Finance Research Consultant, @FranzFranzoni's latest research shows thematic ETFs tend to crash and burn shortly after launch. A disciplined valuation approach will keep you from wasting time chasing rainbows. #ValuationDriven #ETFs #valuation

https://t.co/pfme0IcHVC

[Applied Finance @AppliedFinance]

What does "Value Investing" mean to you - investing in stocks that:

1. Trade below their intrinsic worth?

2. Are run by moral CEO's that do good first, profit later?

3. Are cheap by virtue of trading at low multiples to book value, sales, or some mix of them?

[Applied Finance @AppliedFinance]

There is a huge opportunity for small cap investors. Are you willing to move beyond passive indices that pile into memes to uncover it? #SmallCaps #Finance #WealthManagement #ValuationDriven #Investment https://t.co/rcGzUJI6kA

[Rafael Resendes @rresendes]

What does “Value Investing” mean to you - investing in stocks that:

1. Trade below their intrinsic worth?

2. Are run by moral CEO’s that do good first, profit later?

3. Are cheap by virtue of trading at low multiples to book value, sales, earnings, or some mix of them?

[Applied Finance @AppliedFinance]

Welcome to the team! @FranzFranzoni

[Rafael Resendes @rresendes]

This quarter I address some common myths about DCF, and take and tease equity duration as a tool for portfolio construction.

Share your feedback and sign up for our quarterly newsletter to get the latest in Valuation and Wealth Creation insight from our amazing team. #VALUATION

[Applied Finance @AppliedFinance]

"DCF is too subjective."

That's one of the errors & misunderstandings we found regarding how the #ValueInvesting community thinks about it, and here we offer our perspective on each. But we'd like to know what you think.

#Finance #FinanceAndEconomy
https://t.co/XtovmSiT6r