I don't believe value investing dead. If it is it will be the same as saying valuation is irrelevant.- good luck if you believe that!
If you still believe valuation matters here are 96 deep value investment ideas from around the world.
What the deep value screen looks like
To find the deep value ideas this is what I screened for:
- All companies listed on the main stock markets worldwide
- Daily traded volume of at least $100,000 (you must be able to buy or sell easily)
- Minimum company market value $30 million (to remove really small companies)
- Sorted all the companies that met the above criteria by trailing 12 month Earnings Yield (Earnings Before Interest and Taxes to Enterprise Value) the best valuation metric ever tested worldwide
You can read more about why Earnings Yield is the best ratio you can use to find undervalued companies here:
This simple ratio beats the world’s best value funds
The best valuation metric ever tested worldwide
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After removing the wild Earnings Yield numbers this is what the deep value screen came up with:
[Image of screen has been removed as it is out of date - Please go to our blog page for more recent investment ideas]
Cheapest 16 deep value Earnings Yield companies
[Image of screen has been removed as it is out of date - Please go to our blog page for more recent investment ideas]
Next 16 deep value companies, still high Earnings Yield numbers but more believable.
[Image of screen has been removed as it is out of date - Please go to our blog page for more recent investment ideas]
Deep value with a quality measure
To get rid of junk companies I added a quality measure, the Piotroski F-Score.
This is what the screen looked like:
- All companies listed on the main stock markets worldwide
- Daily traded volume of at least $100,000 (you must be able to buy or sell relatively easily)
- Minimum company market value $30 million (to remove really small companies)
- Companies with a Piotroski F-Score higher than 6 (Best = 9, Worst = 0)
- Sorted all the companies that met the above criteria by trailing 12 month Earnings Yield (Earnings Before Interest and Taxes to Enterprise Value).
You can read more about the Piotroski F-Score here:
This academic can help you make better investment decisions – Piotroski F-Score
Can the Piotroski F-Score also improve your investment strategy?
To find more companies like these, or others that exactly fit your investment strategy click here: I am interested sign me up
The following is what the deep value plus quality screen came up with:
[Image of screen has been removed as it is out of date - Please go to our blog page for more recent investment ideas]
Cheapest 16 deep value plus quality companies, as you can see still some wild Earnings Yield numbers but not as high as when you just looked at Earnings Yield.
[Image of screen has been removed as it is out of date - Please go to our blog page for more recent investment ideas]
Next 16 deep value plus quality companies, still high Earnings Yield numbers but interesting companies, mainly in Japan.
[Image of screen has been removed as it is out of date - Please go to our blog page for more recent investment ideas]
Do your own research
You know this already but it is always worth mentioning. The above ideas are just that, investment idea for you to research further.
For example this is the research we do for the Quant Value investment newsletter.
PS: To find more companies like these, or others that exactly fit your investment strategy click here: I am interested sign me up
PPS It is so easy to put things off, why not sign up right now before it slips your mind
