valuation metric to use as an investment strategy. Eliminating stocks below the 10% NYSE market–equity breakpoint, they found that for the period under study, an annually rebalanced equal-weighted portfolio of high-EBITDA/TEV stocks earned annual returns of 17.66%, with a 2.91% annual three-factor alpha. Gray and Vogel concluded that this measure compares favorably with E/M; cheap-E/M stocks earned 15.23% a year.