Value Composite One

The Value Composite One (VC1) is a way of ranking companies by valuation developed by James O’Shaughnessy and explained in the latest edition of his excellent book What Works on Wall Street: The Classic Guide to the Best-Performing Investment Strategies of All Time

The VC1 factor is calculated using the following five valuation ratios:
- Price to book value
- Price to sales
- Earnings before interest, taxes, depreciation and amortization (EBITDA) to Enterprise value (EV)
- Price to cash flow
- Price to earnings

In the screener the VC1 has a value of between 0 (undervalued company) and 100 (expensive or overvalued company).

 

More information and back test

You can find more information (including back test information) here: This combined valuation ranking gives you higher returns - Value Composite One