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Discover the Ultimate 2023 Piotroski F-Score Stocks with Best Value to Book Ratios!

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Discover the Ultimate 2023 Piotroski-F-Score Stocks with Best Value to Book Ratios!

Seek out the top Piotroski-F-Score stocks aligning with superior value to book ratios to elevate your investment ventures.
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The ultimate investment strategy ideas for 2023 centered around the best value to book ratios and Piotroski-F-Score await you in this article.

Unlock insights on enhancing this strategy and gaining a comprehensive understanding of incorporating the value to book ratios and Piotroski-F-Score into your investment portfolio.

The premier value to book ratio Piotroski-F-Score investment stocks for 2023 will be categorized into:

  • Global
  • North American
  • European
  • Asian

 

First, let's delve into some background information.

The value to book ratio (Current share price / Book value per share) serves as a potent valuation metric for identifying undervalued investment prospects. Backed by extensive research over significant periods, this strategy outperforms market performance.

 

Enhancing the Value to Book Ratio

 However, like any single ratio investment strategy, considerable enhancements can be made.

Prior to that, here are the back tested returns that could have been harvested leveraging a low Value to Book (VB) investment approach in Europe over the 12-year period from June 13, 1999 to June 13, 2011.

PB_overall_BT

Source: Quantitative Value Investing in Europe: What works for achieving alpha

Q1 (Quintile 1) represents the cheapest 20% of companies in terms of PB, while Q5 (quintile 5) represents the most expensive.

The lowest VB companies (Q1) significantly outperformed the market, which yielded a 30.54% return over that 12-year period.

 

To implement your personal Value to Book Piotroski-F-Score investment strategy – Click here

 

 

Optimizing the Value to Book Strategy Returns

An avenue to amplify your returns through a low Value to Book strategy is to fuse it with the Piotroski-F-Score.

 

Unraveling the Piotroski-F-Score

The Piotroski-F-Score was crafted by an enigmatic accounting professor, Joseph D. Piotroski, who shuns the limelight and is rarely interviewed.

In 2000, his research paper titled “Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers” aimed to engineer a system (using a straightforward nine-point scoring model) to boost returns through investing in low value to book (referred to as high book to market) value companies.

His findings surpassed even his wildest expectations.

The strategy of purchasing only companies scoring highest (8 or 9) on his nine-point scale, or F-Score as he termed it, during the 20-year period from 1976 to 1996 resulted in an average market out-performance of 13.4%.

Even more impressive were the outcomes of a strategy involving investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

 

Outperforming the Index by 7%

During the same 20-year period from 1976 to 1996, this tactic led to an average annual return of 23%, significantly trumping the average S&P 500 index return of 15.83% during the corresponding period.

The average out-performance of the index of just over 7% may seem inconspicuous, yet over the two-decade period, an investment of 100 in this long short investment strategy would have burgeoned to 6,282 compared to a mere 1,860 if you had invested in the S&P 500 index.

The gap between these two rates of return over the 20-year period amounts to over 44 times your initial investment!

 

Piotroski-F-Score Exclusive Strategy

This is what ensued when the Piotroski-F-Score was evaluated in Europe across the 12-year period from June 13, 1999 to June 13, 2011.

Fscore_overall_BT

Source: Quantitative Value Investing in Europe: What works for achieving alpha

Q1 (Quintile 1) represents companies with the highest (best) Piotroski-F-Score, while Q5 (quintile 5) features companies with the lowest Piotroski-F-Score (worst).

The highest F-Score companies (Q1) substantially outperformed the market, which returned 30.54% over the same 12-year period.

 

As is evident, the strategy yielded the best results for medium-sized enterprises.

 

To implement your personal VB Piotroski-F-Score investment strategy – Click here

 

Scrutinizing the Piotroski-F-Score

 We also examined the Value to Book ratio alongside numerous other ratios (including the Piotroski-F-Score), and the table below illustrates how deploying solely a low Value to Book ratio strategy can yield substantial improvements.

PB_overall_2_factor_BT

Source: Quantitative Value Investing in Europe: What works for achieving alpha

 

Prime Combination – Momentum
Notably, the optimal approach to heighten returns was to pair VB with Price Index 6 months (6 months momentum) or Price Index 12 months (12 months momentum).

Value to book and Piotroski-F-Score – A 317% Enhancement
Conjoining low Value to Book companies with those exhibiting the highest (best) Piotroski-F-Score would have realized the fourth highest return over the 12-year period, amounting to +685.2%, yet still a highly commendable yield. This equates to an impressive 317% improvement over a value to book only strategy.

Now, let's explore the investment concepts.

 

 

Top 2023 Global Price to Book Piotroski-F-Score Investment Concepts

 

Exclusive Value to Book Piotroski-F-Score Investment Concepts

Here's what the screening process encapsulated:

  • Incorporating all countries globally
  • Top 20% of Value to Book companies
  • Minimum daily trading volume of $100,000
  • Minimum company market value of $100 million
  • Financial statements updated within the last 6 months
  • Piotroski-F-Score > 6
  • Outcomes sorted based on Value to Book from undervalued to overvalued

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Best 2023 Price to Book Piotroski F-Score ideas - Worldwide

 

Discover the Fusion of Price to Book Piotroski F-Score and Price Index 6-month (Momentum)

Here's a snapshot of what this eye-catching screen revealed:

  • Inclusion of all countries across the globe
  • Identification of the top 20% Price to Book companies
  • Requirement of a minimum daily trading volume of $100,000
  • Mandate for a minimum company market value of $100 million
  • Ensured the financial statements were updated within the last 6 months
  • Filtered by Piotroski F-Score > 6
  • Sorted the results by Price Index 6 months (Momentum) from best to worst

Best 2023 Price to Book Piotroski F-Score Momentum ideas - Worldwide

 

 

If you want to put into effect your personal Price to Book Piotroski F-Score investment strategy, click here

 

 

Uncover the Finest Price to Book Piotroski F-Score Investment Suggestions in North America for 2023

Standalone Anticipations for Price to Book Piotroski F-Score

Behold the essence of this screen:

  • Inclusion of the USA and Canada
  • Identification of the top 20% Price to Book companies
  • Requirement of a minimum daily trading volume of $100,000
  • Mandate for a minimum company market value of $100 million
  • Ensured the financial statements were updated within the last 6 months
  • Filtered by Piotroski F-Score > 6
  • Sorted the results by Price to Book from undervalued to expensive

Best 2023 Price to Book Piotroski F-Score ideas - North America

 

Discover the Fusion of Price to Book Piotroski F-Score and Price Index 6-month (Momentum)

Here's a snapshot of what this enlightening screen unveiled:

  • Selection of the USA and Canada
  • Identification of the top 20% Price to Book companies
  • Requirement of a minimum daily trading volume of $100,000
  • Mandate for a minimum company market value of $100 million
  • Ensured the financial statements were updated within the last 6 months
  • Filtered by Piotroski F-Score > 6
  • Sorted the results by Price Index 6 months (Momentum) from best to worst

Best 2023 Price to Book Piotroski F-Score Momentum ideas - North America

 

 

To orchestrate your own Price to Book Piotroski F-Score investment strategy – Click here

 

 

Examine the Leading Price to Book Piotroski F-Score Investment Ideas in Europe for 2023

Exclusive Price to Book Piotroski F-Score Investment Perspicacity

Gaze upon the essence of this screen:

  • Selection of EU countries, Scandinavia and the UK
  • Identification of the top 20% Price to Book companies
  • Requirement of a minimum daily trading volume of $100,000
  • Mandate for a minimum company market value of $100 million
  • Ensured the financial statements were updated within the last 6 months
  • Filtered by Piotroski F-Score > 6
  • Sorted the results by Price-to-Book from undervalued to expensive

Best 2023 Price to Book Piotroski F-Score ideas - Europe

Discover the Fusion of Price to Book Piotroski F-Score and Price Index 6-month (Momentum)

Here's a snapshot of what this insightful screen unveiled:

  • Selection of EU countries, Scandinavia and the UK
  • Identification of the top 20% Price to Book companies
  • Requirement of a minimum daily trading volume of $100,000
  • Mandate for a minimum company market value of $100 million
  • Ensured the financial statements were updated within the last 6 months
  • Filtered by Piotroski F-Score > 6
  • Sorted the results by Price Index 6 months (Momentum) from best to worst

Best 2023 Price to Book Piotroski F-Score Momentum ideas - Europe

 

 

To instigate a low Price to Book and Piotroski F-Score investment strategy in your portfolio, sign up here

 

 

Exploring the Optimal Price to Book Piotroski F-Score Investment Ideas in Asia for 2023

Independent Analysis for Price to Book Piotroski F-Score Anticipation

Behold the essence of this screen:

  • Inclusion of Australia, Hong Kong, Japan, South Korea, New Zealand and Singapore
  • Identification of the top 20% Price to Book companies
  • Requirement of a minimum daily trading volume of $100,000
  • Mandate for a minimum company market value of $100 million
  • Ensured the financial statements were updated within the last 6 months
  • Filtered by Piotroski F-Score > 6
  • Sorted the results by Price to Book from undervalued to expensive

Best 2023 Price to Book Piotroski F-Score ideas - Asia

 

 

Discover the Fusion of Price to Book Piotroski F-Score and Price Index 6-month (Momentum)

Here's a snapshot of what this illuminating screen revealed:

  • Inclusion of Australia, Hong Kong, Japan, South Korea, New Zealand and Singapore
  • Identification of the top 20% Price to Book companies
  • Requirement of a minimum daily trading volume of $100,000
  • Mandate for a minimum company market value of $100 million
  • Ensured the financial statements were updated within the last 6 months
  • Filtered by Piotroski F-Score > 6
  • Sorted the results by Price Index 6 months (Momentum) from best to worst

Best 2023 Price to Book Piotroski F-Score Momentum ideas - Asia

 

 

Warning! – Price to Book has extended periods of under-performance

In spite of being a splendid valuation ratio, the Price to Book ratio also has prolonged periods of under-performance. For more insights, please refer to the following article: Be wary of this time-tested value ratio

 

Utilize Book to Market instead of Price to Book

When seeking out low Price to Book companies, it's advisable to use the Book to Market ratio (the inverse of Price to Book) to understand why – read the following article: Why opt for book to market and not price to book?

 

PS If you're inclined to set in motion a low Price to Book and Piotroski F-Score investment strategy in your portfolio, sign up here

PPS It's so easy to procrastinate, so why not sign up right now before you forget?

 

To initiate your own PB Piotroski F-Score investment strategy – Click here