If you can only pick a single value metric...

Aug '24 • Q&A

Since many of us are value or dividend investors I'm curious what valuation metric you guys would use if you can only pick 1. Really tough to pick one because there are so many good metrics. If I was forced to pick one it would be FCF(free cash flow) like EV/FCF or FCF yield. I like the idea of having strong cash flows for businesses. If I wanted to target this metric I would use HERD or other Pacer ETFs to do it for me. I like to target value stocks as a whole and filtered with factors by Avantis but I did have HERD before for a global FCF fund of funds. I didn't pick P/B ratio because only targeting P/B leaves a lot of room for junk/value traps IMO. I also didn't pick the Piotroski F-Score because it's technically a bundle of value metrics.

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