Theoretical and Applied Economics
No. 3 / 2026 (648), Autumn
Comparing portfolios built from intrinsic-value-based stock picks versus market-cap-weighted indices
London School of Economics, United Kingdom
Dumitru Alexandru BODISLAV
Bucharest University of Economic Studies, Romania
Abstract. This study examines whether a portfolio selected on intrinsic value differs structurally from a capitalization-weighted portfolio drawn from the same universe. A random sample of 29 S&P 500 firms was valued with a free-cash-flow-to-the-firm discounted cash flow model; the 15 most undervalued names formed an equally weighted intrinsic-value portfolio, compared against a capitalization-weighted benchmark built from the same sample. The intrinsic-value portfolio showed lower valuation multiples, a higher dividend yield, a sector mix tilted toward cyclical and staple industries, and markedly lower representation among the largest firms. A three-month return comparison is reported for illustration only.
Contents
Comparing portfolios built from intrinsic-value-based stock picks versus market-cap-weighted indices
The impact of shifting elasticity of substitution on international firm location: global macroeconomic implications
Social security contributions and growth constraints in Greece: breaking the fiscal rigidity trap
Predicting customer churn using Machine Learning: models and core approaches
Have we truly transitioned from industrial to service-based economies? An analysis of the economic sectoral distribution
Monetary-fiscal policy regimes and economic growth in Algeria: a Markov-switching analysis (1990Q2–2025Q4)
Does foreign aid reach the poorest? A multidimensional poverty analysis for Pakistan
Mathematical modeling of nearshoring and reshoring in the reconfiguration of trade flows
Analyzing the impact of agricultural growth on inclusive growth in Côte d'Ivoire: key challenges and opportunities
Credibility erosion and exchange rate pass-through in Türkiye
The aggregate banking-sector footprint of financial education mandates: cohort exposure, community bank margins, and an arithmetic of detection
The relationship between exchange rates, trade and economic growth in the Philippine context
Social sector expenditure, economic growth, and multidimensional poverty in India: evidence from panel data analysis
Capitalization of Romanian companies and macroeconomic variables: friends or foes?
The role of investment and trade in promoting economic growth in Ghana
Beyond generational decay: a psychosocial account of Generation Z’s changing relationship with achievement, education and work
Financial inclusion and sustainable development in Algeria: an empirical analysis using the ARDL Model (2004-2022)
The Impact of Fiscal Policy on Inflation in Romania
Comparing regional and global spillovers to the GCC equity markets
Tax pressure and governance in a spatially interdependent world: international evidence and Morocco’s positioning
Management and performance of territorial police structures: a conceptual framework based on indicators