Interesting project, but it has not worked to select stocks over the short time period considered. Below, FFER is his ratio of market value to fundamental fair value, so a high FFER indicates a stock is overvalued and should fall. Of course, value investing has done badly for many years.<p>"I have tried using backdated FFERs to predict future returns. The results are the opposite of what I would have expected. While the relationship is somewhat weak, stocks with higher historical FFERs tend to generate better returns."