【CFA Japan Seminar Announcement】 
Intrinsic Value: A Complete Approach to Value Investing
Date: March 24th (Tues), 2026, 19:00-20:30
Venue: Room1-2, FINE TOKYO, 5th Floor, South Tower, Otemachi Financial City, 1-9-7 Otemachi, Chiyoda-ku, Tokyo
http://www.fine-tokyo.com/en/access/
(For those who take the subways to come: From Tokyo Metro Otemachi Station, please use the passageway directly connecting to the first basement floor of the building. Then take the South Elevator from the first basement floor or the first floor to the fifth floor.
For those who come from the surface street: Please enter the SouthTower, Otemachi Financial City from FINE TOKYO Entrance that is across the street of Sankei Building. Then take the South Elevator from the first floor to the fifth floor.)
Language: English
Topics: Finance (PL credit eligible)
Speaker: Mr. Rafael Resendes (Applied Finance Co-founder)
Fee: CFA Society Japan Member (Regular/Affiliate/Associate/Professional member), CFA Institute Member of other societies: Free
CFA Program Candidate: 2,000yen
Non-member: 3,000yen
PL Credit: 1.5
(※This is a Global Passport accredited event.)
Lecture outline (structure/agenda)
Traditional value investing has struggled in recent decades, potentially highlighting a flaw in relying on commonly used value ratios such as book-to-price and earnings-to-price. These measures overlook profits that will be realized in the future and therefore only partially capture a company’s true economic value. The prolonged low-interest-rate environment over the past 30 years has made future profitability an even more important determinant of a firm’s value. By focusing on short-term accounting metrics and ignoring future economic profitability, these ratios often cause analysts to mislabel a company as cheap or expensive without accurately establishing whether it is truly overvalued or undervalued.
Intrinsic Value provides a more complete valuation framework by explicitly incorporating what traditional value metrics overlook: the role of future Economic Profits in creating a company’s fundamental value.
A potential concern about using intrinsic value metrics is the reliance on long-term forecasts to make investment decisions. However, the empirical evidence originating from an extensive database of live, out-of-sample intrinsic value estimates, consistently applied from 1999 to 2025 – a 27-year period provides strong support for this approach. The long track record demonstrates the reliability and practical effectiveness of intrinsic value methods in real-world investing.
This presentation summarizes the key findings from research published in the Financial Analysts Journal. The article highlights the performance improvements achieved by using the Intrinsic-Value-to-Market-Value ratio as a predictor of stock returns. Intrinsic value is measured as the capital already invested plus the sum of discounted future Economic Profits, which are positive when a firm’s return on investment exceeds its cost of capital.
What stands out for investment professionals is the practical application of Intrinsic Value, which uncovers stocks that appear “cheap” according to traditional valuation ratios but are in fact overvalued, as well as those that seem “expensive” yet are undervalued. These sorts are possible and successful across both value and growth styles. The evidence suggests that Intrinsic Value delivers consistent performance across different market conditions and macroeconomic regimes. This makes it a valuable tool for constructing resilient portfolios and designing long-term asset allocation strategies that are robust to evolving investment environments.
Speaker's biography
Rafael Resendes – Applied Finance Co-founder
Rafael Resendes is a founding partner of Applied Finance and serves as the Chief Investment Officer, overseeing development and implementation of the firm’s investment strategies.
Mr. Resendes has over 35 years of capital market experience, specializing in equity valuation and capital stewardship measurement. His research and insights have led to the development of strategies that harness stewardship, intrinsic value, and risk characteristics to construct equity portfolios.
Notably, all of Applied Finance's investment strategies have outperformed their benchmarks since their inception.
Mr. Resendes graduated from the University of California, Berkeley with a Bachelor of Science in Finance and Economic Analysis. Mr. Resendes went on to earn his MBA from the University of Chicago. Mr. Resendes is also a member of the Phi Beta Kappa Society.
Recent research:
2020: Valuation Beta - Asset Pricing Model - Addressing Inadequacies of Book to Price with Intrinsic Value
2022: The Wealth Creation Effect in Stock Returns - The interaction of profitability and investment positively correlates with stock returns, controlling for the usual characteristics.
2024: Intrinsic Value: A Solution to the Declining Performance of Value Strategies - publication in the Financial Analysts Journal
Industry Impact:
• Lectured to Over 50 Security Analyst Societies Globally
• Guest lecturer at the Hass School of Business at U.C. Berkeley
• Served as Adjunct Professor at DePaul University in Chicago
Registration
If you wish to attend this seminar, please register via website.
https://cvent.me/b2b24D
CFA Society Japan
[email protected]