Join educated investors who get actionable, evidence-based wealth management insights delivered directly to their inbox.

Mispricing Drives Value Premium

There’s extensive literature documenting that value stocks (the stocks of companies with low prices relative to a valuation metric, such as earnings, book value, cash flow or sales) possess a strong, persistent and pervasive tendency to outperform growth stocks.

While there’s no debate about the existence of the value premium, there’s a major debate about the source of the return differential. Some argue that returns reflect compensation for risk; others argue for mispricing.

Read the rest of the article on

Our Offices
©2018 Arnett Carbis Toothman Wealth Advisors LLC