Thesis

Abstract

The value premium has been on a decline in advanced markets especially in the United States during the years following the global financial crisis (2010 - 2020). The present investment climate does not appear to be favourable to value investing; the rise of passive investing coupled with the growth of intangible assets have put value investors in a bad position. The analysis conducted in this paper was to ascertain if the “value premium is dead” in the global markets, if value ETFs are causing an overcrowding effect or arbitraging away the premium and if there is a need for revision in the valuation metrics used by value investors. The findings suggest the premium is not dead and value ETFs do not affect the premium and there is a need for new valuation metrics that better account for intangible assets.