Investment Strategy in Value Investing

• Main Authors: HUANG,SONG-XIANG, 黃頌翔
• Other Authors: LIN,TSAI-YIN
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/785s8s

碩士 === 國立高雄科技大學 === 財務管理系 === 107 === Stock price is determined according to company's operating and market conditions, but the intrinsic value of the company is relatively stable and easy to calculate. In order to examine which type of stock portfolio will have less risk and relatively certain reward, we focus on undervalued stocks and apply the P/E, P/B and dividend yield as reference indicators. In this study, we examine whether the average return of value stocks from 2009 to 2018 is consistent with the conclusion of literatures based on P/E, P/B and dividend yield. We also construct a portfolio for 2018 refer to Buffett's investment strategy. During the sample period, the company's value is obtained by DCF to find undervalued stocks. The value stocks are classified based on low P/E, low P/B and high yield, respectively, and have higher average rate of returns than other classification intervals. In order to examine performance to the third year in holding period, taking 2015 as an example, we compare portfolios with single indicator, double indicator and triple indicator. Most portfolios reveal profit during one quarter and half year period. Portfolios with single indicator have the highest profit, but are more difficult to achieve in reality. Also, performance of portfolios with triple indicator is not as good as expected. Therefore, the double indicator (P/B and dividend yield) is the ideal combination based on research results.