Deconstructing Value Investing: Valuation vs. Cheapness

When:  Feb 23, 2021 from 3:00 PM to 4:00 PM (ET)
The February 2021 Investment Planning Knowledge Circle will be held on Tuesday, February 23rd at 3 pm ET.

Guest speaker Chris Austin will be presenting, "Deconstructing Value Investing: Valuation vs. Cheapness."

“Value Investing” is commonly misunderstood as buying companies at a discount to their intrinsic value.  While that may have been true decades ago, today “Value Investing” predominantly consists of buying “low price to something” stocks.  The “something” is a fundamental variable such as book value, earnings, and/or sales among others.  However, such approaches do not necessarily identify undervalued stocks, only stocks that are “cheap” relative to the chosen fundamental variable. 

An important, but an unstudied issue for practitioners and academics to understand is:

-- Do cheapness strategies independently generate excess returns? Or
-- Are cheapness strategies simply correlated to intrinsic value, which generate excess returns?

Drawing from over 20 million real-time valuations performed by Applied Finance since 1995, we explore this issue in depth.

Chris has over 17 years of experience working with financial advisors, bank trust departments, and RIA firms.  Throughout this time, Chris has worked closely with small RIA’s and advisors consisting of 1 to 3 professionals, to nationwide brokers with thousands of advisors.  Chris started with Applied Finance in 2003, and is an expert in applying the firm’s Economic Margin® concepts to help advisors construct and implement valuation based portfolio strategies for their clients.  He has spoken at various conferences, trade groups, and company training functions.

Please note, this Knowledge Circle will run a little different.  The registration link will take you to our new Learning Management System at  You will register here and on the day of the webinar you access the call by going to this website and going to your dashboard.