Methodologies, Valuation, Value Investing

Valuation Methodology from Roger Montgomery of Clime Asset Management

I’m starting to read a series of articles written by Buffett-style fund manager Roger Montgomery of Clime Asset Management (

I’ll probably post some interesting/important takeaways as I read through the articles. Here’s one: Roger Montgomery wrote in one article that his approach is to base valuation estimates on 4 elements:

  1. Balance sheet equity
  2. Return the company can sustainably generate from that equity
  3. The manner in which it retains and distributes its earnings
  4. A discount rate

This seems very much like the valuation methodology written in Buffettology (by Mary Buffett) but Roger’s method does not use any P/E ratios.

There’s a pretty nice expose on his method at this forum here.


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