backtests
We tested buying stocks trading below Benjamin Graham's intrinsic value formula. 12.40% CAGR vs 8.01% SPY over 25 years, with 122% up-capture and 0% cash periods. The 75-year-old formula still works without modification.
value-investing
The P/TBV strategy on China's Shenzhen and Shanghai exchanges returned 9.99% annualised over 25 years against the SSE Composite's 2.43%, adding 7.56% per year. It beat the domestic benchmark in 18 of 25 years.
value-investing
The P/TBV strategy on Germany's XETRA returned 8.76% annualised over 25 years, beating the DAX's 5.04% by 3.72% per year. Down capture of -1.07% means the portfolio is essentially flat when the DAX falls.
backtests
India's listed companies are built on physical capital: steel, cement, chemicals, engineering. A P/TBV screen on NSE large-caps returned 14.33% CAGR over 25 years versus 12.06% for the Sensex, with a down capture of 35.3%, meaning the strategy absorbed about a third of the benchmark's downside.
value-investing
The P/TBV strategy on the London Stock Exchange returned 9.72% annualised over 25 years against the FTSE 100's 1.23%, adding 8.50% per year with a maximum drawdown of -32.35%. It beat the FTSE in 20 out of 25 years.
backtests
Price-to-Tangible-Book strips goodwill and intangibles from the valuation, leaving only what a company physically owns. Backtested on US large-caps from 2000-2025, the strategy returned 10.23% CAGR versus 7.85% for SPY, with a down-capture ratio of just 10.07%.
backtests
The yield gap strategy on TSX stocks returned 9.64% CAGR vs 4.44% for the TSX Composite (+5.21% excess) over 25 years. The strategy beat the local index in 72% of invested years, and outperformed SPY by +2.00% annually.
backtests
We ran the yield gap strategy across 20 equity markets from 2000 to 2025. Four markets outperformed SPY — UK (+4.19%), India (+3.45%), Sweden (+2.84%), Canada (+1.98%). Sixteen underperformed, with Korea at the bottom (-4.92%).
backtests
India's high risk-free rate (6.5%) sets a strict 9.5% earnings yield threshold. NSE yield gap stocks returned 10.68% CAGR vs 11.40% for Sensex — trailing the local index by 0.72% annually but beating SPY by +3.04% over 19 invested years.
backtests
We ran the yield gap strategy on Stockholm Stock Exchange stocks from 2000 to 2025. The result: 10.61% CAGR vs 2.95% for OMX Stockholm 30 (+7.66% excess), with a 76% annual win rate against the local index.
backtests
We tested the yield gap strategy on London Stock Exchange stocks from 2000 to 2025. The UK delivered 11.29% CAGR vs 7.64% for SPY — the highest excess return across all 20 markets in our study, and +10.43% annually above the FTSE 100.
backtests
We screened for US stocks where earnings yields significantly exceed government bond rates and ran the backtest from 2000 to 2025. The strategy delivered 8.60% CAGR vs 7.64% for SPY, with notably better bear market behavior.