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

 

How to use the ratio

Available as a screening ratio: Yes

Available as an output column ratio: Yes

 

How to select the best rated Value Composite One companies

To find companies with the best Value Composite One ranking set the slider from 0% to 10%.

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

 

Click here to start using the Value Composite One investment strategy in your portfolio NOW!