Stock Screening Power of Long-term Average Valuation Ratios
October 8, 2013 - Fundamental Valuation
Which long-term smoothed (10-year average) stock valuation metric works best to screen stocks? In the end-of-September 2013 version of their paper entitled “On the Performance of Cyclically Adjusted Valuation Measures”, Wesley Gray and Jack Vogel compare the abilities of five valuation ratios expressed as yields to predict U.S. stock returns, as follows: 10-year average real… Keep Reading