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David Dreman Low PE Screen 200 Qualifying

David Dreman Low Price to Earnings is a value strategy developed by the renowned US fund manager and author David Dreman in his book Contrarian Investment Strategies. It uses a basic value filter of selecting the cheapest 40% of the market by P/E ratio and filtering further for quality according to company size, financial strength and growth. Dreman favoured the P/E strategy above all others: "Our money management firm uses the low-PE method as it's core strategy, but also utilizes the other 3 contrarian strategies extensively." Dreman's studies showed that the cheapest 20% of the market by P/E outperformed the most expensive 20% by 6.7% annually. It should be cautioned that Dreman's portfolio did suffer in the 2008 financial crisis due to an overweighting of low P/E banks. Dreman though continues to evangelise the power of contrarian investing to counter behavioural biases.

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This is an independent study based upon the methods of...
Picture of David Dreman

David Dreman

Dreman is currently the founder, chairman and CIO of Dreman Value Management LLC. Author of 'Contrarian Investment Strategies: The Next Generation'. Regular columnist for Forbes magazine.

Contrarian Investment Strategies Dreman

by David Dreman

The 'contrarian guru' of investment shows today's financiers how to out perform professional money managers and profit from Wall Street panics.

This screen uses the following criteria:

  • Rank ( P/E ) > 60%
  • Sales £m > 100
  • Debt To Assets % < Median Debt To Assets %
  • Current Ratio > 1
  • Net Mgn % > Median Net Mgn %
  • ROE % > Median ROE %
  • EPS Gwth % > Median EPS Gwth %
  • Yield % > Median Yield %
  • Industry Group not in (Collective Investments)

Results are sorted by:

  • P/E in ascending order


And limited to the first 200 Results


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Performance Tracking


Returns FTSE 100
1 week -2.2% -2.3% 0.9% -2.5% - -4.4% 8.6% -1.3%
1 month -0.8% -2.4% 5.7% -3.1% - -2.2% 12.1% -2.2%
3 months 12.6% -4.5% 7.6% -15.8% - 0.6% 36.7% 8.0%
6 months 8.8% -4.8% -1.0% -23.7% 2.4% -0.1% 46.2% 0.8%
1 year 23.1% -2.2% 4.1% -4.4% 1.1% 13.2% 54.4% 1.1%
2 years 30.3% 38.2% 23.2% 64.4% 52.0% 67.7% 218.8% 26.3%
Annualised 16.5% 17.5% 4.9% 32.4% 26.3% 31.8% 74.1%
 
Risks
Max Drawdown -29.0% -12.0% -23.7% -27.8% -24.4% -11.9% -22.3%
Avg Holdings 9.7 24 16.2 13.8 1.2 25 3.1
Diversification Moderate Good Good Moderate Low Good Low

 Studies based on equal weighted portfolios of max 25 stocks rebalanced quarterly. Qualifying shares below updated daily. Past performance not indicative of future returns.



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200 Qualifying

Ticker Name Mkt Cap £m P/E Sales £m Debt To Assets % Current Ratio Net Mgn % ROE % EPS Gwth % Yield % Industry Grp Flag
Subscriber Subscriber Pharmaceuticals United States
Subscriber Subscriber Metals & Mining Sweden
Subscriber Subscriber Machinery, Equipment & Components Korea, Republic of
Subscriber Subscriber Machinery, Equipment & Components United States
Subscriber Subscriber Investment Banking & Investment Services France
Subscriber Subscriber Chemicals Korea, Republic of
Subscriber Subscriber