Dale’s Solo Investors Podcast LLC

Five Cyclically Adjusted Valuation Ratios

Dale talks about five Cyclically Adjusted Valuation Ratios:
Cyclically Adjusted Enterprise Value to EBIT (CAEE™) , Cyclically Adjusted Price to Book (CAPB™), Cyclically Adjusted Enterprise Value to EBITDA (CAEVE™), Cyclically Adjusted Enterprise Value to Free Cash Flow (CAEF™), and Cyclically Adjusted Enterprise Value to Gross Profit (CAEG™) . 
Verbal Disclosures Read from 1:07-2:18
FULL DISCLAIMERS AND DISCLOSURES CAN BE FOUND UNDER THE “IMPORTANT DISCLAIMERS AND DISCLOSURES” SECTION WITHIN THIS URL:    https://dalex5.podbean.com/
 
Provisional Patent Application: The CAEE™ ratio and its use in index construction, ETF automation, and financial analytics is the subject of a provisional patent application filed with the USPTO by Dale’s Solo Investors Podcast LLC and is a proprietary intellectual asset. The CAEE™ ratio is currently in the process of being trademarked. The concepts, methodologies, and proprietary research related to the CAEE™ ratio are confidential and intended solely for informational purposes. Any unauthorized use, reproduction, or incorporation of this methodology into investment frameworks or for research purposes without prior written consent from Dale’s Solo Investors Podcast, LLC is strictly prohibited. This includes use in software, financial products, research publications, or investment services. 
 
Common Law: CAEE™ is a proprietary term developed and used by Dale’s Solo Investors Podcast LLC in connection with financial index construction, investment analytics, and related educational and research services. This mark represents unique combinations of financial methodologies and branding, and is being used in commerce as a trademark under common law. Certain terms are not affiliated with or endorsed by any third-party index provider or financial institution. All other trademarks and registered trademarks referenced are the property of their respective owners.
 
Note: This episode features a security-level report which reflects a component-level analysis used in the ongoing development and maintenance of the   CAEE™ based proprietary index system, which aggregates multiple such analyses into broader ETF , ETP, direct indexing, index, SMA, and mutual fund type strategies.
 
 
 
Limitations of the CAEE™ Ratio (Cyclically Adjusted Enterprise Value to EBIT)
Backward-Looking Bias: The ratio uses 10-year inflation-adjusted EBIT averages, which means it's based on historical performance. This can obscure recent structural changes in a company (e.g., a pivot to a new business model, significant M&A, or post-pandemic recovery).
Sector Bias: Asset-light, tech-forward companies may appear overvalued under CAEE™due to low historical EBIT and high EV. Asset-heavy sectors (like industrials, energy, or utilities) may screen as “cheap”.
Limited Coverage of Intangibles: CAEE™doesn't directly account for intangibles like brand value, network effects, or IP. Companies with low EBIT due to heavy R&D or scaling phases may be penalized unfairly.
Financial Sector issue: For banks, insurance companies, broker-dealers, and most financial institutions, EBIT is either meaningless or misleading, because Interest income and interest expense are central to their operations. EBIT is supposed to exclude interest by design (hence “Earnings Before Interest and Taxes”), which removes a core operating input/output for financial firms. Debt and interest is a product to financial firms, not just a capital structure.
 
Provisional Patent Application: The  CAPB™ , CAEVE™ , CAEF™ , and CAEG™ , ratios use in index construction and ETF automation is the subject of a provisional patent application filed with the USPTO by Dale’s Solo Investors Podcast LLC. These marks represent unique combinations of financial methodologies and branding, and are being used in commerce as a trademark under common law.
 
Note: This episode features a security-level report which reflects a component-level analysis used in the ongoing development and maintenance of the  CAPB™ , CAEVE™ , CAEF™ , and CAEG™ based proprietary index systems, which aggregates multiple such analyses into broader ETF , ETP, direct indexing, index, SMA, and mutual fund type strategies.
 
Trademark Clarity: The ™ symbol indicates a claim of common law trademark rights in the United States. These marks are not yet federally approved.
 
© 2025 Dale’s Solo Investors Podcast LLC – Patent Pending | All Rights Reserved | Do Not Distribute | Proprietary Use Only
 

CAEE™ Ratio

Dale discusses a novel approach to valuing individual stocks. 
Verbal Disclosures read from 2:54 - 3:50 .
General information and full disclosures for Dale’s Solo Investors Podcast LLC are listed here: dalex5.podbean.com 
Sign up for Guru Focus:  https://www.gurufocus.com/?affid=213fdcd9248dba7b149775aea75327e1 , click "Book a Demo"
 
CAEE™ Ratio — Patent Pending
CAEE™ Ratio is a proprietary investment methodology developed and owned by Dale’s Solo Investors Podcast LLC.
 
 The CAEE™ Ratio and its use in index construction, ETF automation, and financial analytics is the subject of a provisional patent application filed with the USPTO by Dale’s Solo Investors Podcast LLC and is a proprietary intellectual asset. The CAEE™ Ratio is currently in the process of being trademarked.
 
 I noticed that many traditional valuation ratios often fall short when it comes to avoiding value traps (especially in companies carrying high levels of debt.) That realization led me to dig deeper. I found that while the EV/EBIT ratio does account for a company’s debt, it typically only reflects a single year's EBIT, which can vary significantly from year to year. It doesn’t adjust for long-term fluctuations, making it potentially misleading for long-term investors.
That’s when the idea clicked — Cyclically Adjusted Enterprise Value to EBIT. ( CAEE™ Ratio) 
 
The CAEE™ Ratio, compares a company’s enterprise value to its inflation-adjusted, 10-year average EBIT. Unlike traditional valuation ratios that fluctuate with short-term earnings volatility or market cycles (like the normal EV/EBIT ratio) , the CAEE Ratio normalizes operating performance over a full economic cycle—offering a more stable and meaningful measure of intrinsic value. My vision is to use this ratio, potentially along with other cyclically adjusted metrics, to power a new generation of investment strategies and financial indices—strategies that are rules-based, decile-driven, and dynamically rebalanced to capture long-term alpha through deep fundamental discipline.
 
This invention enables the construction of diversified portfolios, financial indices, and rules-based investment portfolios by selecting securities from the most favorable CAEE™ Ratio deciles, quantiles, or percentages.The invention applies across multiple indices, such as the S&P 500, S&P MidCap 400, S&P SmallCap 600, Russell 2000, etc. ( I am not affiliated with four these indices )   and supports the creation of investment vehicles including exchange-traded funds (ETFs), mutual funds, exchange-traded notes (ETNs), and custom financial indices. 
 
Alternatively, the invention can be applied to individual stock analysis ( which is what was done in this episode) . Please note: This security-level report reflects a component-level analysis used in the ongoing development and maintenance of the CAEE™-based proprietary index system, which aggregates multiple such analyses into broader ETF, index, ETN, ETP, and mutual fund strategies.
 
 

BFH , Credit card duopolies , retail stocks benefit?

Dale talks about BFH , Credit card duopolies , and how retail stocks benefit. 
 Episode starts at 0:15 . Verbal Disclosures read from 0:50 - 2:00. General information and full disclosures for Dale’s Solo Investors Podcast LLC are listed here: dalex5.podbean.com 
Sign up for Guru Focus:  https://www.gurufocus.com/?affid=213fdcd9248dba7b149775aea75327e1 , click "Book a Demo"
 
CAEE Ratio™ — Patent Pending
CAEE Ratio is a proprietary investment methodology developed and owned by Dale’s Solo Investors Podcast LLC.

Dole Foods an asset play

Correction: In this episode, I mistakenly referenced the wrong land valuation for Dole. Dole had a certain number of acres publicly listed on their website. However, just because a company operates on land doesn’t necessarily mean they own it. I initially assumed Dole owned certain land in the Philippines, but after revisiting their 10-K and 20-F filings, I found no indication of ownership there. Instead, I reviewed the land they actually own and corrected my estimates. The updated land value range is $506 million (low estimate) to $1.1 billion (high estimate). 
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Dale analyzes DOLE stock to explore whether the company's land holdings could be undervalued relative to its balance sheet.
Verbal Disclosures read from 0:27 - 1:38. General information and full disclosures for Dale’s Solo Investors Podcast LLC are listed here: dalex5.podbean.com 
 
 
Estimated Location
Estimated  Region Area
Estimated Acres
Estimated Value per Acre ($USD)
Total Estimated Value (Low - High) ($USD)
 
Colombia
Magdalena Department
569
$3,000 - $7,000
1,700,000
4,000,000
Costa Rica
Guanacaste Province (Cañas, La Fortuna)
697
$5,000 - $12,000
3,500,000
8,400,000
Costa Rica
Guanacaste (Additional Acres)
8,000
$5,000 - $12,000
40,000,000
96,000,000
Costa Rica
Puntarenas
7,000
$5,000 - $12,000
35,000,000
84,000,000
Costa Rica
Alajuela
5,000
$5,000 - $12,000
25,000,000
60,000,000
Costa Rica
Cartago
3,000
$5,000 - $12,000
15,000,000
36,000,000
Costa Rica
Limón
3,000
$5,000 - $12,000
15,000,000
36,000,000
Costa Rica
San Carlos (El Muelle Farm)
2,402
$5,000 - $12,000
12,000,000
28,800,000
Costa Rica
El Comendador
285
$5,000 - $12,000
1,400,000
3,400,000
Costa Rica
Zurqui
460
$5,000 - $12,000
2,300,000
5,500,000
Costa Rica
Other Areas (Remaining)
25,805
$5,000 - $12,000
129,000,000
309,000,000
Ecuador
Dolores
257
$3,000 - $6,000
800,000
1,500,000
Ecuador
Guayas Province
4,000
$2,000 - $4,000
8,000,000
16,000,000
Ecuador
Los Ríos Province
2,500
$1,500 - $3,000
3,750,000
7,500,000
Ecuador
El Oro Province
1,500
$1,800 - $3,500
2,700,000
5,250,000
Ecuador
Azuay Province
752
$1,200 - $2,500
900,000
1,880,000
Honduras
Choluteca
12,000
$2,750 - $5,000
33,000,000
60,000,000
Honduras
Colón
8,000
$4,500 - $7,500
36,000,000
60,000,000
Honduras
Atlántida
5,000
$4,000 - $6,000
20,000,000
30,000,000
Honduras
Gracias a Dios
3,000
$3,000 - $5,000
9,000,000
15,000,000
Honduras
Olancho
4,000
$3,500 - $5,500
14,000,000
22,000,000
Honduras
Yoro
2,227
$3,500 - $5,000
7,800,000
11,100,000
Guatemala
Izabal Department
2,500
$2,500 - $4,000
6,250,000
10,000,000
Guatemala
Alta Verapaz Department
800
$1,000 - $2,000
800,000
1,600,000
Guatemala
Baja Verapaz Department
500
$800 - $1,500
400,000
750,000
Guatemala
Santa Rosa Department
300
$900 - $1,800
270,000
540,000
Guatemala
Chimaltenango Department
104
$600 - $1,500
60,000
160,000
Peru
Sullana, Peru (Banana Production)
405
$3,000 - $5,000
1,200,000
2,000,000
Chile
Paine
2,760
$8,000 - $10,000
22,100,000
27,600,000
South Africa
Limpopo
1,300
$1,500 - $3,500
1,800,000
4,550,000
South Africa
Mpumalanga
204
$1,000 - $2,500
200,000
750,000
USA
Oahu, Hawaii (Pineapples, Coffee, Cacao)
5,014
$10,000 - $40,000
50,100,000
200,600,000
USA
Other USA Land
1,587
$5,000 - $10,000
7,900,000
15,900,000
 
 
 
 
506,930,000
1,165,780,000
 
 
114928
acres
Low Total = $506 million
 
 
 
 
 
High Total = $1.165 billion
Average estimate value = 835.5 million

Net net stock - VNDA

Dale values symbol VNDA and talks about the benefits and risks of "net-net" stocks. 
Verbal disclosures read from 2:27 - 3:40.  General information and full disclosures for Dale’s Solo Investors Podcast LLC are listed here: dalex5.podbean.com 
Sign up for Guru Focus:  https://www.gurufocus.com/?affid=213fdcd9248dba7b149775aea75327e1 , click "Book a Demo"