Corequity has been screening its equity universe since 2004. The monthly results shown below cover 13 years, from September 2004-2017 The Undervalued Screen has achieved an average annualized gain over the S&P 500 of 5.20% while the Overvalued underperformed by 2.76% for a spread of 7.95% pa.
While this may not seem like much to some, it is enormous. This chart shows what the actual gains would have been on an investment of $100 over the period. The Undervalued Screens produce a return that is over 5.5 times that of the Overvalued.
(c) 2017 Robert L. Colby
 For background please refer to https://corequity.org/about-2-2/ . For explanation of methodology please refer to https://corequity.org/category/guide-to-the-corequity-analysis
 Undervalued Stocks are in the highest quartiles of Valuation Return and the ratio of Normalized Earnings (MPEPS) to Estimated Earnings (EPS). Ovevalued Screens’ criteria are the opposite.
 Our universe most closely tracks the equal weighted S&P 500