Description:

Learn more about the Market and stocks through CAEE™

Dale’s Solo Investors Podcast LLC provides educational content and financial market analysis powered by our proprietary process called CAEE™ .

CAEE™ is a unique analytical framework designed to help market participants, researchers, and learners better understand index performance and long-term valuation trends.

Our publications, research discussions, and podcast episodes feature insights derived from CAEE™ , which we developed exclusively for use in our educational and analytical services.

This episode talks about 5 frameworks:

Cyclically Adjusted Enterprise Value to EBIT (CAEE™) , Cyclically Adjusted Price to Book (CAPB™), Cyclically Adjusted Enterprise Value to EBITDA (CAEVE™), Cyclically Adjusted Enterprise Value to Free Cash Flow (CAEF™), and Cyclically Adjusted Enterprise Value to Gross Profit (CAEG™) .

Verbal Disclosures Read from 1:07-2:18

FULL DISCLAIMERS AND DISCLOSURES CAN BE FOUND UNDER THE “IMPORTANT DISCLAIMERS AND DISCLOSURES” SECTION WITHIN THIS URL: https://dalex5.podbean.com/

Provisional Patent Application: CAEE™ and its potential 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. The concepts, methodologies, and proprietary research related to CAEE™ are confidential and intended solely for informational purposes. Any unauthorized use, reproduction, or incorporation of this methodology into investment frameworks or for research purposes without prior written consent from Dale’s Solo Investors Podcast, LLC is strictly prohibited. This includes use in software, financial products, research publications, or investment services.

Common Law: CAEE™ is a proprietary term developed and used by Dale’s Solo Investors Podcast LLC in connection with financial index construction, investment analytics, and related educational and research services. This mark represents unique combinations of financial methodologies and branding, and is being used in commerce as a trademark under common law. Certain terms are not affiliated with or endorsed by any third-party index provider or financial institution. All other trademarks and registered trademarks referenced are the property of their respective owners.

Note: This episode features a security-level report which 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 potential broader ETF , ETP, direct indexing, index, SMA, and mutual fund type strategies.

Limitations of CAEE™ (Cyclically Adjusted Enterprise Value to EBIT)

• Backward-Looking Bias: CAEE uses 10-year inflation-adjusted EBIT averages, which means it's based on historical performance. This can obscure recent structural changes in a company (e.g., a pivot to a new business model, significant M&A, or post-pandemic recovery).

• Sector Bias: Asset-light, tech-forward companies may appear overvalued under CAEE™ due to low historical EBIT and high EV. Asset-heavy sectors (like industrials, energy, or utilities) may screen as “cheap”.

• Limited Coverage of Intangibles: CAEE™ doesn't directly account for intangibles like brand value, network effects, or IP. Companies with low EBIT due to heavy R&D or scaling phases may be penalized unfairly.

• Financial Sector issue: For banks, insurance companies, broker-dealers, and most financial institutions, EBIT is either meaningless or misleading, because Interest income and interest expense are central to their operations. EBIT is supposed to exclude interest by design (hence “Earnings Before Interest and Taxes”), which removes a core operating input/output for financial firms. Debt and interest is a product to financial firms, not just a capital structure.

Provisional Patent Application: The CAPB™ , CAEVE™ , CAEF™ , and CAEG™ , ratios use in index construction and ETF automation is the subject of a provisional patent application filed with the USPTO by Dale’s Solo Investors Podcast LLC. These marks represent unique combinations of financial methodologies and branding, and are being used in commerce as a trademark under common law.

Note: This episode features a security-level report which reflects a component-level analysis used in the ongoing development and maintenance of the CAPB™ , CAEVE™ , CAEF™ , and CAEG™ based proprietary index systems, which aggregates multiple such analyses into potential broader ETF , ETP, direct indexing, index, SMA, and mutual fund type strategies.

Trademark Clarity: The ™ symbol indicates a claim of common law trademark rights in the United States. These marks are not yet federally approved.

© 2025 Dale’s Solo Investors Podcast LLC – Patent Pending | All Rights Reserved | Do Not Distribute | Proprietary Use Only