Finding The Investment Gems
OCTOBER 15, 2020
Returns are driven by growth, profitability, risk, and valuation. Investors utilize many ratios to sort through the universe of companies to find those that are most likely to outperform. However, not all ratios have the same efficacy, ratios are best when used together, and ratio performance depends on the macro environment. This paper sheds light on these relationships and shows how EVA-related ratios are better than traditional ratios for finding the investment gems of the future.