RT Journal Article SR Electronic T1 Value Investing Through the Lens of Campbell-Shiller JF The Journal of Portfolio Management FD Institutional Investor Journals SP 59 OP 69 DO 10.3905/jpm.2015.41.3.059 VO 41 IS 3 A1 Jack P. Mo A1 Xiao Qiao YR 2015 UL https://pm-research.com/content/41/3/59.abstract AB Value investors and finance academics have different methods for forecasting returns. Value investing focuses on purchasing assets that are undervalued relative to their intrinsic values, as determined through a framework designed to quantify the potential worth of underlying cash flows or liquidated assets. The Campbell-Shiller identity is a celebrated academic formula that connects current dividend yield to future returns, dividend growth, and dividend yield. The authors expand and apply the Campbell-Shiller relationship to earnings yield and earnings growth, and demonstrate that traditional value investing and the Campbell-Shiller identity provide the same investment advice illustrate their similarities in an example with two specific securities. Using sell-side projections, the authors show that the Campbell-Shiller formula is an effective screening tool that can be used in tandem with traditional value analysis.TOPICS: Statistical methods, security analysis and valuation