Value Investing Blog - Data-Driven Analysis &amp; Guides

ROIC Explained: Why Return on Invested Capital Beats ROE for Fundamental Analysis

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May 21, 2026

Price-to-Free-Cash-Flow vs P/E Ratio: Which Valuation Metric Wins?

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May 21, 2026

What Is the Piotroski F-Score? A Complete Guide for Value Investors

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May 21, 2026

Owner Earnings: Warren Buffett's Preferred Cash Flow Measure Explained

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May 21, 2026

Net Present Value for Stock Investors: The Math Behind Intrinsic Value

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May 21, 2026

Margin of Safety: Benjamin Graham's Most Important Investing Concept

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May 21, 2026

Magic Formula Investing: Joel Greenblatt's Systematic Value Strategy Explained

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May 21, 2026

EV/EBITDA Valuation: The Professional's Alternative to P/E Ratio

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May 21, 2026

The Beneish M-Score: Detecting Earnings Manipulation Before It Destroys Your Portfolio

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May 21, 2026

Altman Z-Score: The Bankruptcy Predictor Every Value Investor Should Know

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May 21, 2026

The Acquirer's Multiple: The Deep Value Strategy That Outperformed the Magic Formula

Tobias Carlisle's Acquirer's Multiple (EV/EBIT) is the simplest deep value screen with the strongest long-run backtest results. This guide explains why it works, how to calculate it, and how to build a portfolio around it.

May 21, 2026

Cyclically Adjusted P/E Ratio (CAPE): The Long-Run Valuation Guide

The Shiller P/E smooths out 10 years of earnings to eliminate business cycle noise. This guide explains the CAPE calculation, what historical readings predicted, the limitations critics raise, and how to use it for portfolio decisions.

May 21, 2026

How to Use the Altman Z-Score: A Practical Guide for Value Investors

The Altman Z-Score is one of the most validated bankruptcy prediction tools in finance. This practical guide walks through the exact steps to calculate it, interpret the three zones, and integrate it into a value investing workflow.

May 21, 2026

Magic Formula vs. Acquirer's Multiple: Which Deep Value Strategy Actually Wins?

Joel Greenblatt's Magic Formula combines cheapness and quality. Tobias Carlisle's Acquirer's Multiple uses cheapness alone. The backtests surprised many investors. Here is a detailed comparison of both strategies, their returns, and when each approach makes sense.

May 21, 2026

Owner Earnings: Buffett's Method for Calculating the True Value of a Business

In 1986, Warren Buffett introduced owner earnings in his Berkshire annual letter as the correct measure of business value. This guide explains the formula, why it beats EPS and free cash flow, and how to apply it to any company today.

May 21, 2026

ROIC vs ROE: Which Metric Actually Matters More for Value Investors?

Return on Equity is the most widely quoted profitability metric, but Return on Invested Capital tells a much more honest story. Here is why ROIC wins as the definitive measure of business quality and when ROE can be useful.

May 21, 2026

Stock-Based Compensation: The Hidden Dilution That Value Investors Must Account For

SBC is a real cost paid in shares rather than cash. Most non-GAAP earnings metrics exclude it, making tech companies appear far more profitable than they actually are. Here is how to measure SBC dilution and why Buffett has repeatedly called it out.

May 21, 2026

Tobin's Q: How This Simple Ratio Signals Stock Market Over- and Undervaluation

Tobin's Q compares the market value of all assets to their replacement cost. When Q is high, markets are pricing businesses above the cost of building them. Learn how to use this macro valuation indicator alongside CAPE for long-run investment decisions.

May 21, 2026

WACC Explained Simply: What Non-Finance People Actually Need to Know

Weighted Average Cost of Capital sounds intimidating but the core idea is simple. This guide explains WACC in plain English, why it matters for stock valuation, and how to estimate it without getting lost in academic formulas.

May 21, 2026