Value Investing

Interesting chart that suggests that the underperformance of value investing since 2006 is down to valuation.
The reason is that the valuation metric to look at is free cash flow yield to enterprise yield and not P/B or P/E.
On this metric the Russel Value Index has been expensive since 2007.
This is partly because in 1985 68% of the market value of the S&P 500 was tangible assets, today that number is 16%.