Year end Valuations of equities, Industries and Sectors.

The image below shows the valuation of the 540 equities that we cover together with the Industries and Sectors that they represent.  Attractive stocks are in the upper right hand corner with high Valuation Return and high Estimated Earnings vs Normalized earnings.  (See performance results below.)

Access to an interactive version of this worksheet is available on the Tableau web site given below.

Click here to go to interactive web page 

By clicking on the Sector that you are interested in, the Sector, Industry and companies are highlighted.  Clicking the Sector again restores the view to the original.  Also by moving the cursor over the position brings up information about the stock, industry or sector.

This sheet shows the best and worst equity values as of 12/31.  

Click here for the interactive web page 

2011 Results for the Under- and Overvalued Screens

The spread between the Undervalued and Overvalued Screens* was larger than usual in 2011.  For the year, it was +16.64% due primarily to the poor performance of the Overvalued.  The Undervalued had a mixed year with good results in the 1st half with poor results in the 3rd Quarter and an ok 4th Quarter.  The Overvalued did very poorly in the first 3 quarters and came back 5 1/2 % in the 4th.

For the 7.25 years since inception the returns are +6.16% pa and -2.53% pa relative to the S&P 500 for a spread of +8.69% pa.  Relative to our universe the relative returns are +3.21% and -5.23% pa respectively.

* The  criteria for the Undervalued screens are 3rd & 4th Quartile Valuation Return and 4th Quartile of E/M.  The Overvalued are the mirror opposite.  This is explained with the seven year record to September 2011 is shown below.