**Multi dimensional value investing strategy**
I am trying to create a multidimensional value investing strategy on Excel. **For example: **
For a one-dimensional factor like P/E, I rank all FTSE 100 stocks from the lowest P/E to the highest P/E, and then divide into 5 separate quintiles to get my portfolios - supposedly the most under-valued to the most over-valued. Assuming P/E ratio does work in identifying undervalued stocks.
Does anyhow know how I can produce a similar back-test, but with 2 factors instead, such as P/E ratio and dividend yield, on Excel?
i.e. Ranking the Ftse 100 stocks based on low(increasing) P/E ratios and high(decreasing) dividend yields. **Please bare with me as I get more ambitious. **
What if this same strategy is implemented with 3 or more factors?
-P/E, P/Book value, Dividend yields, P/Cash flow, etc Anyone has any idea? |