RH - How To Differentiate 'Highly Valued' From 'Overvalued' Stocks To Beat The Market - Part 1
- When the market is in a phase of rich valuation, it is tempting to broadly identify the market or these stocks as “overvalued”.
- Making the distinction between stocks deserving high valuations and those that are overvalued is key, particularly in the current market.
- The G_Score is a strategy designed to find winning stocks within the group of stocks with rich valuations.
- Published in 2003 by Partha Mohanram, we review the mechanics of the G_Score strategy, test out-of-sample performance from 1999 thru 2020, and identify stocks today that are “highly valued” vs “overvalued”.
- In future installments we will build on the ideas of the G_Score, with some potential updates to the strategy.
For further details see:
How To Differentiate 'Highly Valued' From 'Overvalued' Stocks To Beat The Market - Part 1