Value Research Stocks
Value Research Stocks

@VROStocks

7 Tweets 9 reads Sep 04, 2023
๐—œ๐˜€ ๐˜๐—ต๐—ฒ ๐˜€๐—ฒ๐—ป๐˜€๐—ฒ๐˜… ๐—ฐ๐˜‚๐—ฟ๐—ฟ๐—ฒ๐—ป๐˜๐—น๐˜† ๐—ผ๐˜ƒ๐—ฒ๐—ฟ๐˜ƒ๐—ฎ๐—น๐˜‚๐—ฒ๐—ฑ? ๐Ÿ“ˆ
You can use the following metrics to find out.
A thread๐Ÿงตโฌ‡๏ธ
1/ ๐—ฃ๐—ฟ๐—ถ๐—ฐ๐—ฒ-๐˜๐—ผ-๐—ฒ๐—ฎ๐—ฟ๐—ป๐—ถ๐—ป๐—ด๐˜€ (๐—ฃ/๐—˜)
If an indexโ€™s current P/E is higher than its median P/E, the index might be overvalued.
2/ ๐—ฃ๐—ฟ๐—ถ๐—ฐ๐—ฒ-๐˜๐—ผ-๐—ฏ๐—ผ๐—ผ๐—ธ ๐˜ƒ๐—ฎ๐—น๐˜‚๐—ฒ (๐—ฃ/๐—•)
If an indexโ€™s current P/B is more than its median P/B, then it might be overvalued.
3/ ๐——๐—ถ๐˜ƒ๐—ถ๐—ฑ๐—ฒ๐—ป๐—ฑ ๐˜†๐—ถ๐—ฒ๐—น๐—ฑ
If an indexโ€™s current dividend yield is more than its median dividend yield, then the index might be undervalued.
4/ ๐— ๐—ฎ๐—ฟ๐—ธ๐—ฒ๐˜ ๐—ฐ๐—ฎ๐—ฝ ๐˜๐—ผ ๐—š๐——๐—ฃ
If the market cap of an index is higher than GDP, then the index might be overvalued.
5/ ๐——๐—ถ๐—ณ๐—ณ๐—ฒ๐—ฟ๐—ฒ๐—ป๐—ฐ๐—ฒ ๐—ฏ๐—ฒ๐˜๐˜„๐—ฒ๐—ฒ๐—ป ๐Ÿญ๐Ÿฌ๐—ฌ ๐—š-๐˜€๐—ฒ๐—ฐ ๐˜†๐—ถ๐—ฒ๐—น๐—ฑ ๐—ฎ๐—ป๐—ฑ ๐—ฆ๐—ฒ๐—ป๐˜€๐—ฒ๐˜…โ€™๐˜€ ๐—ฒ๐—ฎ๐—ฟ๐—ป๐—ถ๐—ป๐—ด๐˜€ ๐˜†๐—ถ๐—ฒ๐—น๐—ฑ
If the difference between the 10-year government bond yield and the index's earnings yield is higher than the median value, the index might be overvalued.
6/
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