Value Cycle Opportunities in the India and U.S. Equities.
Quantamental Value Outlook
The ValueScore Indicator is constructed using Fundamental, Quantitative, and Technical inputs. The indicator is computed quarterly and classifies Indices and Stocks into 6 buckets at a point in time assigning them a score of 0 to 5 as follows:
Deep Discount (0) | Fair Discount (1) | Right Priced (2) | Fairly Expensive (3) | Highly Expensive (4) | Trended (5)
The ValueScore indicator can be applied in 2 ways:
- Passive Value
- Active Value
The ValueScore indicator is useful for long to medium-term investing.
Typical entries for long positions arise in the Fair & Deep Discount bucket. These can be carried till the Trending bucket is held. A move from the Trended bucket to the Highly Expensive bucket indicates a sell / short position entry.
The detailed construction and interpretation notes of QVGS ValueScore can be understood through the link below.
- Buckets of 0 and 1 represent a discounted valuation of the market.
- Bucket 2 represents a Fairly Valued market.
- Buckets 3 and 4 indicated an Expensive valuation.
- Bucket 5 represented a Trended market implying an increase in the valuation of the market as a whole.
- Shades of green/blue represent discounted valuations.
- Yellow represents fair valuatuion.
Quantamental portfolios based on Value Cycles in equities across geographies.
|Value Investing||Medium Volatility||Multi Cap Equity|
|Deep Value Investing||High Volatility||Small & Micro Cap Equity|
|Risk-seeking Value Investing||High Volatility||All Cap Equity|
|Value Investing||Medium Volatility||US Top 500|