A Screen on P/B Buys ROE and E/P

so a screen on B/P is the same as screening on ROE and E/P; again, the screener is essentially employing two screens. This decomposition of the screen identifies the underlying fundamentals. This book has gone to lengths to explain the risk and return fundamentals behind ROE and E/P. That is what the investor is buying when screening on E/P.

Scroll to Top