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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (64993)	9/29/2020 6:24:12 PM
From: Paul Senior	1 Recommendation Recommended By sjemmeri Respond to of 78753

Yes, as normally said, but academics - at least in several of the studies I've read -- they turn it around. As sometimes they do in their writings, but less commonly I believe, earning-to-price. Another of the classic (low p/e) definitions of value. Just high operating earnings. But here, need some bogey, i.e what's "high"? High free cash flow to market cap. High EBITDA in conjunction with other measures, such as sales or enterprise value. Almost forgot Peter Lynch's PEG ratio. I myself don't use these last two. And more. Apparently we here all have our favorites as well as ones we don't normally use.

To: Elroy who wrote (64993)	9/29/2020 7:10:44 PM
From: E_K_S	Read Replies (2) \| Respond to of 78753

The key on assets and selling at/close to BV is how important are those assets to (1) the owner and (2) a potential acquirer? I still think UNFI assets are worth a lot to Amazon & Whole Foods. Other companies I own like GV or GVA what's a 2-5 year old tractor and/or lift worth and if you sell at an auction what will those assets net in a sale? So, BV must also be looked at in the entirety of the working operation too (less any Goodwill). That's why I use PE as my main metric of Value. Anything less than 10 is awesome especially when interest rates are at historical lows. -------------------------------------------------------------- The BofA analyst must have some other metrics they use for value. I see I own a few companies on that list and have some I sold. Will need to drill down on his list to see if something pops out. EKS