86 Deep Value And Quality Deep Value Ideas Around The World by Tim du Toit, Quant Investing
After a bit of volatility around the world the past few months I thought you would be interested in finding out where the cheapest 86 deep value investment ideas can be found around the world.
Screener criteria
To find the deep value ideas this is what I screened for:
- All companies listed on the main stock markets worldwide
- Daily traded volume of at least $100,000 (you must be able to buy or sell relatively easily)
- Minimum company market value $30 million (to remove really small companies)
- Sorted all the companies that met the above criteria by trailing 12 month Earnings Yield (Earnings Before Interest and Taxes to Enterprise Value) the best valuation metric ever tested worldwide
Earnings Yield works
You can read more about why Earnings Yield is the best valuation measure here:
This simple ratio beats the world’s best value funds
The best valuation metric ever tested worldwide
Find your own ideas like these
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Here are the ideas
The following is what the deep value screen came up with:
Cheapest 15 deep value companies, as you can see some wild Earnings Yield numbers
Next 15 deep value companies, still some wild Earnings Yield numbers but more believable.
Third group of 15 deep value companies, Earnings Yield still high but interesting companies, not unexpectedly in bombed out industries.
Deep value combined with quality
To get rid of junk companies I added a quality measure, the Piotroski F-Score.
Quality Deep Value screener criteria
This is what the screen looked like:
- All companies listed on the main stock markets worldwide
- Daily traded volume of at least $100,000 (you must be able to buy or sell relatively easily)
- Minimum company market value $30 million (to remove really small companies)
- Companies with a Piotroski F-Score higher than 6 (Best = 9, Worst = 0)
- Sorted all the companies that met the above criteria by trailing 12 month Earnings Yield (Earnings Before Interest and Taxes to Enterprise Value)
Just how good is the Piotroski F-Score
You can read more about the Piotroski F-Score here:
This academic can help you make better investment decisions – Piotroski F-Score
Can the Piotroski F-Score also improve your investment strategy?
Find more companies like these
To find more companies like these (incl. 82 other ratios and indicators) for your portfolio click here: I am interested sign me up
Here are the Quality Deep Value ideas
The following is what the deep value plus quality screen came up with:
Cheapest 15 deep value plus quality companies, as you can see still some wild Earnings Yield numbers but not as high as when you just looked at Earnings Yield.
Next 15 deep value plus quality companies, still high Earnings Yield numbers but interesting companies mainly in Japan and South Korea.
Third group of 15 deep value plus quality companies, Earnings Yield high but interesting companies.
You already know this
You know this already but its always worth mentioning. The above ideas are just that, investment idea for you to research further.
For example Globo PLC, a fraud company, it came up on the list because the share price has fallen like a stone.
Wishing you profitable investing.
Tim du Toit
