ISS EVA Webinar Series
Don’t be Fooled by Earnings: Trust EVA
When economic conditions worsen, management teams may manipulate financial statements to hide mistakes and confuse the truth. Unusual items have been common places to obfuscate the numbers. In these situations, an Economic Value Added analysis can provide investors with a clearer picture. Please join the EVA research team in a discussion of their recent white paper, Don’t Be Fooled by Earnings: Trust EVA.
Some Key Findings:
- Unusual Items Charge Rises When Conditions Deteriorate, Like Right Now
- Cheap + Low-Unusual Items Charge Momentum Stocks Outperform, Especially During Risk-Off Markets
- EVA Momentum is Superior to Net Income Momentum in Driving Returns
- High-EVA Momentum + Low-Unusual Items Charge Momentum Stocks Outperform, Especially During Risk-Off Markets
Hosted by:
- Anthony Campagna, Director of Research, ISS EVA
- Kevin Spellman, PhD, CFA, Senior Advisor, ISS
