Uploaded March 2026 | Updated September 2026, 1 week ago
In this session, we look at being a passive value screener, using “screens” for cheapness and quality to find the best bargains in the market. We look at earnings screens, book value screens, revenue screens and dividend yield screens, by first noting the intuition behind each screen, then the evidence on how that screen has performed over time and finally the possible weak spots with each screen. We end the session by setting up a general framework for value screening that tries to find mismatches: cheap stocks that have good fundamentals.
Playlist for class (Intro + 42 sessions): youtube.com/playlist?list=PLUkh9m2BorqnZGADa8cTzeJblmrZY_SqP&si=zI2pk17pJeld4nWR
Slides: https://www.stern.nyu.edu/~adamodar/pdfiles/invphilslides25/session13.pdf
Post-class test: https://www.stern.nyu.edu/~adamodar/pdfiles/invphilcertificate/postclass/session13test.pdf
Post-class solution: https://www.stern.nyu.edu/~adamodar/pdfiles/invphilcertificate/postclass/session13soln.pdf
In this session, we look at being a passive value screener, using “screens” for cheapness and quality to find the best bargains in the market. We look at earnings screens, book value screens, revenue screens and dividend yield screens, by first noting the intuition behind each screen, then the evidence on how that screen has performed over time and finally the possible weak spots with each screen. We end the session by setting up a general framework for value screening that tries to find mismatches: cheap stocks that have good fundamentals.
Playlist for class (Intro + 42 sessions): youtube.com/playlist?list=PLUkh9m2BorqnZGADa8cTzeJblmrZY_SqP&si=zI2pk17pJeld4nWR
Slides: https://www.stern.nyu.edu/~adamodar/pdfiles/invphilslides25/session13.pdf
Post-class test: https://www.stern.nyu.edu/~adamodar/pdfiles/invphilcertificate/postclass/session13test.pdf
Post-class solution: https://www.stern.nyu.edu/~adamodar/pdfiles/invphilcertificate/postclass/session13soln.pdf
