Search a title or topic

Over 20 million podcasts, powered by 

Player FM logo
Artwork

Content provided by dalex5. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by dalex5 or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.
Player FM - Podcast App
Go offline with the Player FM app!

CAEE™

18:55
 
Share
 

Manage episode 477593945 series 3652823
Content provided by dalex5. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by dalex5 or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

Dale discusses a novel approach to valuing individual stocks.

Verbal Disclosures read from 2:54 - 3:50 .

General information and full disclosures for Dale’s Solo Investors Podcast LLC are listed here: dalex5.podbean.com

Sign up for Guru Focus: https://www.gurufocus.com/?affid=213fdcd9248dba7b149775aea75327e1 , click "Book a Demo"

CAEE™ — Patent Pending

CAEE™ is a proprietary investment methodology developed and owned by Dale’s Solo Investors Podcast LLC.

CAEE™ and its use in index construction, ETF automation, and financial analytics is the subject of a provisional patent application filed with the USPTO by Dale’s Solo Investors Podcast LLC and is a proprietary intellectual asset. CAEE™ is currently in the process of being trademarked.

I noticed that many traditional valuation ratios often fall short when it comes to avoiding value traps (especially in companies carrying high levels of debt.) That realization led me to dig deeper. I found that while the EV/EBIT ratio does account for a company’s debt, it typically only reflects a single year's EBIT, which can vary significantly from year to year. It doesn’t adjust for long-term fluctuations, making it potentially misleading for long-term investors.

That’s when the idea clicked — Cyclically Adjusted Enterprise Value to EBIT.

( CAEE™ )

CAEE™ , compares a company’s enterprise value to its inflation-adjusted, 10-year average EBIT. Unlike traditional valuation ratios that fluctuate with short-term earnings volatility or market cycles (like the normal EV/EBIT ratio) , CAEE™ normalizes operating performance over a full economic cycle—offering a more stable and meaningful measure of intrinsic value. My vision is to use this ratio, potentially along with other cyclically adjusted metrics, to power a new generation of investment strategies and financial indices—strategies that are rules-based, decile-driven, and dynamically rebalanced to capture long-term alpha through deep fundamental discipline.

This invention enables the construction of diversified portfolios, financial indices, and rules-based investment portfolios by selecting securities from the most favorable CAEE™ deciles, quantiles, or percentages. The invention applies across multiple indices, such as the S&P 500, S&P MidCap 400, S&P SmallCap 600, Russell 2000, etc. ( I am not affiliated with four these indices ) and supports the creation of investment vehicles including exchange-traded funds (ETFs), mutual funds, exchange-traded notes (ETNs), and custom financial indices.

Alternatively, the invention can be applied to individual stock analysis ( which is what was done in this episode) . Please note: This security-level report reflects a component-level analysis used in the ongoing development and maintenance of the CAEE™-based proprietary index system, which aggregates multiple such analyses into broader ETF, index, ETN, ETP, and mutual fund strategies.

  continue reading

8 episodes

Artwork

CAEE™

CAEE™

published

iconShare
 
Manage episode 477593945 series 3652823
Content provided by dalex5. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by dalex5 or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

Dale discusses a novel approach to valuing individual stocks.

Verbal Disclosures read from 2:54 - 3:50 .

General information and full disclosures for Dale’s Solo Investors Podcast LLC are listed here: dalex5.podbean.com

Sign up for Guru Focus: https://www.gurufocus.com/?affid=213fdcd9248dba7b149775aea75327e1 , click "Book a Demo"

CAEE™ — Patent Pending

CAEE™ is a proprietary investment methodology developed and owned by Dale’s Solo Investors Podcast LLC.

CAEE™ and its use in index construction, ETF automation, and financial analytics is the subject of a provisional patent application filed with the USPTO by Dale’s Solo Investors Podcast LLC and is a proprietary intellectual asset. CAEE™ is currently in the process of being trademarked.

I noticed that many traditional valuation ratios often fall short when it comes to avoiding value traps (especially in companies carrying high levels of debt.) That realization led me to dig deeper. I found that while the EV/EBIT ratio does account for a company’s debt, it typically only reflects a single year's EBIT, which can vary significantly from year to year. It doesn’t adjust for long-term fluctuations, making it potentially misleading for long-term investors.

That’s when the idea clicked — Cyclically Adjusted Enterprise Value to EBIT.

( CAEE™ )

CAEE™ , compares a company’s enterprise value to its inflation-adjusted, 10-year average EBIT. Unlike traditional valuation ratios that fluctuate with short-term earnings volatility or market cycles (like the normal EV/EBIT ratio) , CAEE™ normalizes operating performance over a full economic cycle—offering a more stable and meaningful measure of intrinsic value. My vision is to use this ratio, potentially along with other cyclically adjusted metrics, to power a new generation of investment strategies and financial indices—strategies that are rules-based, decile-driven, and dynamically rebalanced to capture long-term alpha through deep fundamental discipline.

This invention enables the construction of diversified portfolios, financial indices, and rules-based investment portfolios by selecting securities from the most favorable CAEE™ deciles, quantiles, or percentages. The invention applies across multiple indices, such as the S&P 500, S&P MidCap 400, S&P SmallCap 600, Russell 2000, etc. ( I am not affiliated with four these indices ) and supports the creation of investment vehicles including exchange-traded funds (ETFs), mutual funds, exchange-traded notes (ETNs), and custom financial indices.

Alternatively, the invention can be applied to individual stock analysis ( which is what was done in this episode) . Please note: This security-level report reflects a component-level analysis used in the ongoing development and maintenance of the CAEE™-based proprietary index system, which aggregates multiple such analyses into broader ETF, index, ETN, ETP, and mutual fund strategies.

  continue reading

8 episodes

All episodes

×
 
Loading …

Welcome to Player FM!

Player FM is scanning the web for high-quality podcasts for you to enjoy right now. It's the best podcast app and works on Android, iPhone, and the web. Signup to sync subscriptions across devices.

 

Copyright 2025 | Privacy Policy | Terms of Service | | Copyright
Listen to this show while you explore
Play