Earnings often dominate the investing headlines, but according to a growing body of research, a better indicator of future stock returns may be gross profitability. The research focuses on gross…
Tag: Robert Novy-Marx
A Better Metric than P/E or P/B?
The stock investing world is filled with well-known valuation metrics — the price/earnings ratio, price/book ratio, free cash flow yield, price/sales ratio, and numerous other variables have been used by…