Firm Fundamentals and Future Stock Returns
March 9, 2011 - Fundamental Valuation, Size Effect, Value Premium
Which firm fundamentals predict associated stocks returns, and which ones do not? In their February 2011 paper entitled “Returns Premia on Company Fundamentals”, Kateryna Shapovalova, Alexander Subbotin and Thierry Chauveau assess the significance, stability and interplay of excess returns for individual stocks as predicted by widely used firm fundamentals. Specifically, they consider: book-to-price ratio; earnings-to-price… Keep Reading