• Why Earnings do not reflect a company’s true profits,
• Why P/E ratios are poor proxies for company value, and
• Why Sales Growth does not lead to higher stock prices.

Resendes and Obrycki concluded that existing financial analysis tools were inadequate and a new approach was required. This led them to create AFG’s Economic Margin Framework, which begins by correcting the various distortions and flaws with “As Reported” accounting figures, such as EPS, to measure a firm’s true economic profit. The EM Framework then links a firm’s performance to its market value by modeling the interaction of necessary value drivers: Economic Profitability, Growth, Competition and Risk.

Over the last decade, AFG’s buy-and-sell recommendations, and model portfolios have consistently outperformed their benchmarks. Currently, over 170 investment houses, corporations, and consulting firms around the world utilize AFG’s research.

As a widely recognized expert on equity markets and valuation, Rafael is a frequent contributor to leading financial publications and investment programs including: The Wall Street Journal, Forbes, CNBC Squawk Box, and Forbes on Fox among others. For the past four years, Rafael has served on the CFA Institute’s Speaker Retainer Program, speaking to over 40 Financial Analyst Societies in over 10 countries. Rafael is a guest lecturer at University of California at Berkeley, and served as an Adjunct Professor at DePaul University in Chicago.

Prior to co-founding AFG, Resendes was a member of the Chicago Board of Trade, where he traded Treasury Note Options, and served as Director of Research for HOLT Value Associates. Rafael graduated Phi Beta Kappa from The University of California, Berkeley, with a Bachelor of Science in Finance and Economic Analysis, and obtained his MBA from the University of Chicago.