Singapore value stocks show early premium, growth stocks overestimated earnings.
The study looked at value and growth stocks in Singapore to see if they can predict company profits. They found that there is a value premium for Singapore stocks, but it is strongest in the first 2 years. Value stocks tend to have lower earnings growth and return on equity, while growth stocks are overestimated in terms of earnings growth. There is also evidence that return on equity tends to revert back to the average, but earnings growth rates do not.