Unlocking Stock Market Success: Australian Study Reveals Key Value-Growth Proxies
The study looked at different ways to measure the value and growth of Australian stocks. They found that using book-to-market ratio is the best way to predict stock returns overall. When looking at companies with positive earnings, cash-flow-to-price ratio is the most important factor. But for companies with negative earnings, book-to-market ratio is key. This means that companies with positive earnings tend to be larger than those with negative earnings.