Subject: Re: Value, when to buy
It's not necessary to estimate P/IV for the x-axis. P/BV works, too. Here's a plot of 3-year return vs P/BV. Once again Google messed up the formatting when I uploaded the file, but it's still legible. Google also changed the trendline to linear from a third order polynomial. Third order polynomials fit normal distributions and skewed normal distributions better than do liner fits, but it's no matter. A third order polynomial just bends the left had end of the trendline up a bit and the right hand end of the trendline down a bit. I used the ending BV for the quarter, but beginning BV for the quarter works just as well.

https://drive.google.com/open?...