Traditional equity valuation metrics, while helpful, also can have limitations. Within his most recent white paper, Liridon Gila, CFA, introduces the Quality Adjusted Valuation Ration (QVR), to include many of the components that the Sawgrass team focuses on within our security selection. These components include profitability, consistency of earnings growth, and valuation. Long-term studies indicate that these factors outperform over a market cycle. As we enter a period of uncertainty, this focus on quality within the active space could be of further importance.
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