Setting up the criteria

I would refer you to giraffevalue post here for the value selection criteria that i choose to adopt

I summaries what i got from there and the criteria i am using now to construct my value portfolio below.

1) price to book < 1 (lower the better)
2) price to earning and EV/EBDIT < 15 (lower the better)
3) debt to equity ratio < 30%
4) dividend payout > 3%
5) 5 consecutive years of dividend payout
6) low pay out ratio of < 70% (lower the better)
7) not S-chip (china based company list in Singapore exchange)

Criteria 1 and 2 are value ratios. The lower the value the better.

Criteria 3 to 7 are quick assessment on the company to minimize the chance that the company will go bankrupt. Plus value investing usually see return in 1 to 3 years and its better if u still get paid to wait.

After setting up the criteria, the next step will be execution. This i believe is the toughest part of this style of investing.