Enhancing the Value Premium Via P/E Analysis
March 13, 2007 - Fundamental Valuation, Value Premium
Reader Richard Beddard, editor of Interactive Investor, flagged a series of three studies by Keith Anderson and Chris Brooks on approaches to enhancing the value premium via empirical analysis of the price-earnings ratio (P/E) calculated with lagged earnings. One study seeks to optimize value indication based on the extent and weighting of historical earnings used… Keep Reading