none

Since our current economic environment is getting more and more competitive, enterprises must continuously improve and strengthen their ability in order to maintain their competitiveness. Therefore, investment activities of firms are the key elements to drive business growth. This article tries to discuss whether three different investment dimensions can help to boost firm¡¦s future growth of profitability. This research uses investment spending of listed firms in domestic electronics industry (including capital expenditure, intangible assets and R&D expenditures) as variable to explore the effects of these three investment expenditures on corporate P/B ratio as well as ROA (Return on Asset). This study attempts to analyze whether firm¡¦s investment activities can impose significantly positive influence on its future profitability. We use panel data to run regression analysis and further divide Taiwan electronics industry into five sectors to analyze the effects of firm¡¦s investment expenditure on P/B and future profitability among different sectors. The empirical results show that investment spending imposes significantly positive effect on firm¡¦s profits, but this relationship exist time lags.

Bakgrund Värdeinvesteringar bygger på att handla lågt prissatta tillgångar i förhållande till värde. Många har under åren formulerat olika strategier för att identifiera underprissatta tillgångar. Särskilt populärt är strategier baserade på att handla bolag med låga nyckeltal såsom P/B- och P/E-tal. Dessa strategier visade i flertalet studier förmågan att generera riskjusterad överavkastning på 80- och 90-talet. Just dessa strategier har dock visat upp sämre resultat i senare studier gjorda på 2000-talet. På den svenska marknaden har riskjusterad överavkastning mellan åren 1980-2010 uppvisats. Det har dock förblivit obesvarat hur resultatet hade blivit på den svenska marknaden efter 2010. Syfte Syftet med studien är att analysera i vilken utsträckning en värdeinvesteringsstrategi baserad på P/B-, respektive P/E-talet, genererar riskjusterad överavkastning.   Metod Studien har antagit en kvantitativ strategi med en deduktiv ansats. Genom en tidsserieundersökning har portföljer skapats och analyserats utifrån främst avkastning och risk. I studien avser riskjusterad överavkastning sådan avkastning för portföljen som överstiger vad som kan förväntas enligt CAPM. Parvisa t-test har genomförts för att avgöra resultatens statistiska signifikans. Bolagen som ingår i studien har varit sådana noterade på Stockholmsbörsens Large Cap mellan 2010-06-30, till och med 2020-06-30.    Slutsats Samtliga portföljer genererade en riskjusterad överavkastning och, med utdelningar inkluderade, en sharpekvot som översteg ett. Strategin baserad på P/B-talet genererade högre riskjusterad överavkastning än strategin baserad på P/E-talet. / Background The fundamental aspect in value investing is to buy assets for a lower market price, than its fundamental value. Over the years a lot of investors have tried to create strategies in order to identify undervalued companies. Particularly popular is value investing strategies based on buying stocks with low P/E and P/B ratios. These strategies have, according to several studies, managed to gain risk adjusted excess returns during the 1980s and 1990s. But during the 2000s, studies have shown inferior results on the American market. On the Swedish market, studies have shown that excess return was possible during the period 1980-2010, but it is still unanswered how the strategy would have performed during the period 2010-2020.    Purpose The purpose is to analyze to what extent a value investing strategy, based on the P/E and P/B ratio, respectively, generates risk adjusted excess return.  Methodology The study is based on a quantitative strategy with a deductive approach. Through a timeseries analysis, portfolios have been created in order to analyze return and risk. Risk adjusted excess returns is in this study, is defined as all returns who exceeds expected return from the CAPM model. Paired T-test have been used to determine the results statistical significance. The assets included in the sample is companies listed on Stockholm Large Cap index between 2010-06-30 and 2020-06-30.    Conclusions All constructed portfolios gained risk adjusted excess return during the period and, with dividends included, a Sharpe ratio higher than one. The strategy based on the P/B ratio outperformed the strategy based on the P/E ratio.

Diplomová práce se zabývá analýzou akciových titulů z německého burzovního indexu DAX. Úvodní kapitola diplomové práce obsahuje korelační analýzu indexu DAX s dalšími akciovými indexy. Hlavní kapitola je zaměřena na využití fundamentální analýzy při ohodnocování akciových titulů z dotyčného burzovního indexu DAX. Ohodnocování akciových titulů je prováděno pomocí dividendového diskontního modelu a modelů ziskových. Závěr tvoří zkoumání úspěšnosti investičních strategií založených na fundamentálních akciových ukazatelích.

<p>Background:</p><p>The efficient market hypothesis states that it is not possible to consistently outperform the overall stock market by stock picking and market timing. This is because, in an efficient market, all stock prices are at their correct level, and there are no over- or undervalued stocks. Nevertheless, deviations from true price can occur according to the hypothesis, but when they do they are always random. Thus, the only way an investor can perform better than the overall stock market is by being lucky. However, the efficient market hypothesis is very controversial. It is often discussed within the area of modern financial theory and there are strong arguments both for and against it.</p><p>Purpose:</p><p>The purpose of this study was to investigate whether it is possible to outperform the overall stock market by investing in stocks that are undervalued according to the enterprise multiple (EV/EBITDA), and the price-earnings ratio.</p><p>Realization of the Study:</p><p>Portfolios were constructed based on information from five years, 2001 to 2005. Each year two portfolios were put together, one of them consisting of the six stocks with the lowest price-earnings ratio, and the other consisting of the six stocks with the lowest EV/EBITDA. Each portfolio was kept for one year and the unadjusted returns as well as the risk adjusted returns of the portfolios were compared to the returns on the two indexes OMXS30 and AFGX. The sample consisted of the 30 most traded stocks on the Nordic Stock Exchange in Stockholm 2006.</p><p>Conclusion:</p><p>The study shows that it is possible to outperform the overall stock market by investing in undervalued stocks according the price-earnings ratio and the EV/EBITDA. This indicates that the market is not efficient, even in its weak form.</p>

Background: The efficient market hypothesis states that it is not possible to consistently outperform the overall stock market by stock picking and market timing. This is because, in an efficient market, all stock prices are at their correct level, and there are no over- or undervalued stocks. Nevertheless, deviations from true price can occur according to the hypothesis, but when they do they are always random. Thus, the only way an investor can perform better than the overall stock market is by being lucky. However, the efficient market hypothesis is very controversial. It is often discussed within the area of modern financial theory and there are strong arguments both for and against it. Purpose: The purpose of this study was to investigate whether it is possible to outperform the overall stock market by investing in stocks that are undervalued according to the enterprise multiple (EV/EBITDA), and the price-earnings ratio. Realization of the Study: Portfolios were constructed based on information from five years, 2001 to 2005. Each year two portfolios were put together, one of them consisting of the six stocks with the lowest price-earnings ratio, and the other consisting of the six stocks with the lowest EV/EBITDA. Each portfolio was kept for one year and the unadjusted returns as well as the risk adjusted returns of the portfolios were compared to the returns on the two indexes OMXS30 and AFGX. The sample consisted of the 30 most traded stocks on the Nordic Stock Exchange in Stockholm 2006. Conclusion: The study shows that it is possible to outperform the overall stock market by investing in undervalued stocks according the price-earnings ratio and the EV/EBITDA. This indicates that the market is not efficient, even in its weak form.

This study uses cluster analysis as the methodology to explore policy of the asset allocation as well as the selection of equities under the multiple-factor asset pricing models. Based on the data of financial market recorded on Bloomberg from 2000/1/4 to 2012/2/10, the conclusions of this study are summarized as following: First at all, under the significance level of 5%, P/S ratio should be included in the multiple-factor asset pricing model. Nonetheless, the significance of proxy agent of foreign exchange volatility in terms of 11-day moving average of USD/JPY foreign exchange spot rate, as well as the interest spread in terms of yields on 10-year US government bond subtracting 3-month US treasury bill cannot pass the required significance level. Second, the rates of stock return as Qualcomm, Intel and Texas instruments in the industry supply chain of technology products, will be positively related to interest spread, with the variable of ¡§Foreign_Volitility¡¨ negatively related to those rates of return as well as sales growth momentum positively related to those. As far as those rates of stock return 3C brand companies such as Apple, Microsoft, Dell and IBM, the interpreting capability of variable of ¡§Foreign_Volitility¡¨ under the assumptions of market structure in this study, will be mixed, with the interest spread positively related to those returns and P/S ratio generating mixed outcomes. As far as those equities such as GE, Procter & Gamble, Home Depot, Tiffany, AIG, NIKE, Exxon Mobile Corp, the interpreting capability of variable of ¡§Foreign_Volitility¡¨ under the assumptions of market structure in this study, will be negatively related to stock return except for Exxon Mobile Corp, with the interest spread generating mixed outcomes and P/S ratio positively related to those returns.

Warren Buffet started an investment partnership of $100 in 1956 and has gone on to accumulate a personal net worth of over $60 billion. He started primarily as a value investor, and gradually changed over time to a strategy which uses the PEG ratio as its main tool. Peter Lynch, one of the most successful fund managers in history and had a compound annual growth rate of 29% for 13 years, was the man to first introduce the world to the PEG ratio. With such prominence, however, widespread use of previously successful strategies tend to render them ineffective due to everyone using them, and today the PEG ratio’s effectiveness as a valuation tool remains a topical debate between market commentators.This study sets out to determine if the PEG ratio adds value using JSE Main Board data from 2002 to 2012. Returns from five portfolios constructed directly from share quintiles based on PEG ratio magnitude are compared to returns of a portfolio constructed from the optimum quintile of value shares. The PEG ratio portfolio returns are examined based on 3 rebalancing period strategies, and on relative performance between the quintiles within each strategy.It is found that a 24 monthly rebalancing strategy provides superior returns to that of 3 or 12 monthly rebalancing for PEG quintiles of selected stocks. Furthermore, the lowest PEG ratio quintile in this strategy outperforms the value portfolio by a compound annual growth rate of 4.3%. The second lowest PEG ratio quintile portfolio performs slightly better to ensure that 40% of stocks selected based on the PEG ratio produced sustained superior returns to the optimum quintile value portfolio. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

This study investigates whether the Buffett indicator can be used to make investment decisions in China. The investigation has two approaches. First, this study determines the scaling relationship between the Buffett Indicator and the GDP in China. Previous research and findings in this research regarding the scaling relationship can help international investors when comparing China with a different country as potential investment opportunities. Second, this study also examines whether the Buffett Indicator, the P/E ratio and composite models including the Buffett Indicator can be used as tools for international investors in predicting the Shanghai Index and making investment decisions for the Chinese stock market. The analysis is based on Chinese data from the World Bank, the National Bureau of Statistics of China, the Federal Reserve and the Yahoo Finance. This study finds that there is a sublinear relationship between the Buffett indicator and GDP in China and that the composite models which include the Buffett Indicator perform better to forecast the stock market in China than other indicators.

Genome-scale modeling and new strategies for constraining these models were applied in this research to find new insights into cellular metabolism and identify potential metabolic engineering strategies. A newly updated genome-scale model for Clostridium acetobutylicum, iMM864, was constructed, largely based on the previously published iRS552 model. The new model was built using a newly developed genome-scale model database, and updates were derived from new insights into clostridial metabolism. Novel methods of proton-balancing and setting flux (defined as reaction rate (mmol/g biomass/hr)) ratio constraints were applied to create simulations made with the iMM864 model approximate observed experimental results. It was determined that the following constraints must be applied to properly model C. acetobutylicum metabolism: (1) proton-balancing, (2) constraining the specific proton flux (SPF), and (3) installing proper flux ratio constraints. Simulations indicate that the metabolic shift into solventogenesis is not due to optimizing growth at different pH conditions. However, they provide evidence that C. acetobutylicum has developed strictly genetically regulated solventogenic metabolic pathways for the purpose of increasing its surrounding pH to decrease the toxic effects of high proton concentrations. Applying a ratio constraint for the P/O ratio (a measure of aerobic respiratory efficiency) to the iAF1260 genome-scale model of E. coli K12 MG1655 was explored. Relationships were found between: (1) the P/O ratio, (2) the SPF, (3) the growth rate, and (4) the production of acetate. As was expected, higher acetate production correlates with lower P/O ratios, while higher growth correlates with higher P/O ratios. For the first time, a genome-scale model was able to quantify this relationship and targeting both the P/O ratio and the SFP is required to produce an E. coli K12 strain with either (i) maximized growth rate (and minimized acetate production) or (ii) maximized acetate production (at the expense of cell growth). A gene knockout mutant, Î ndh, was created with E. coli BL-21 to study the effects of forcibly higher P/O ratios on growth. The results suggest that a metabolic bottleneck lies with the NADH-1 complex, the NADH dehydrogenase that contributes to the generation of a proton motive force. / Master of Science