In investing, value premium refers to the greater risk-adjusted return of value stocks over growth stocks, other experts, such as John Clifton "Jack" Bogle, have argued that no value premium exists, claiming that Fama and French's research is period dependent, Bogle is an investor, business magnate, and philanthropist, of which nationality?
Value premium In investing, value premium refers to the greater risk-adjusted return of value stocks over growth stocks. Eugene Fama and K. G. French first identified the premium in 1992, using a measure they called HML (high book-to-market ratio minus low book-to-market ratio) to measure equity returns based on valuation. Other experts, such as John C. Bogle, have argued that no value premium exists, claiming that Fama and French's research is period dependent.
Pre-money valuation A pre-money valuation is a term widely used in private equity or venture capital industries, referring to the valuation of a company or asset prior to an investment or financing. If an investment adds cash to a company, the company will have different valuations before and after the investment. The pre-money valuation refers to the company's valuation before the investment.