7 Large Cap Investment Ideas Based On 4 Defining Characteristics
By Value Expectations: The Applied Finance Group's (AFG) framework and approach for measuring corporate performance and valuation is what sets us apart from other research providers. The AFG valuation framework has proven through vigorous back-testing to be successful at identifying companies likely to outperform index and sector peers. In the last 12 years, the spreads between companies we have labeled Strong Buys and companies we label as Strong Sells is approximately 20%. As such, by focusing on companies that rate highly according to our valuation model and other key AFG metrics, investors can set themselves up for outperformance and avoid potential torpedo stocks. Valuation is too often associated with a price multiple that signifies how much an investor will pay for each dollar of earnings generated by a company. In a price multiple framework such as P/E, an investor decides what the earnings of a company will be and then places a multipleComplete Story »
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