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This paper provides a framework for defining, formulating and evaluating value investment strategies. We define the relative value of an investment in terms of the prospective yield implied by the investment's current price and expected future cash flows. We develop an intuitive and parsimonious approach for estimating the prospective yield by aggregating expected earnings over a suitable forecast horizon. We then adapt our approach to construct a realized yield metric that can be used as adoi:10.2139/ssrn.2310852 fatcat:2rhupy7vqze6bezoo7nosam5jy