Abstract Purpose The purpose of this research is to investigate whether using an accounting fundamental strategy can provide valuable information about the value of a business and generate positive excess buy-and-hold returns on stocks in the Euronext 100 index. Theoretical framework The theoretical framework of the study is based on the combination of valuation theory and accounting research. We rely on fundamental analysis as a stock valuation method, which involves looking at both quantitative and qualitative information in a company's economic and financial records. Design/methodology/approach We examine the relevance of growth and earnings response coefficients, as well as Piotroski's F-scores and Lev and Thiagarajan's L-scores in predicting future stock returns. The analysis covers the years 2000 to 2020. Findings The study finds that accounting fundamental signals provide value-relevant information to investors and have a significant and positive relationship with future buy-and-hold market returns, resulting in high-scoring portfolios achieving significant average annual market excess returns. Practical & social implications of research The results of the study have practical implications for investors who use fundamental analysis as an investment strategy. The results indicate that accounting fundamentals provide value-relevant information to investors and can lead to positive excess buy-and-hold returns. Originality/value The study contributes to the understanding of the role of fundamentals in firm valuation and provides fresh insights into binary models and fundamental analysis applied to European markets. In addition, the study tests the robustness of fundamental strategies using fixed effects regression analysis.

Abstract Purpose We propose a new SCORE model, inspired by Piotroski's (2000) well-known F-SCORE. But here we examine past, present, and future earnings forecasts in this binary model, which is also made up of nine signals. Theoretical framework This research investigates whether a basic accounting-based fundamental analysis method can affect the distribution of returns earned by an investor when applied to a board portfolio of higher growth stocks with high fundamentals (book value). Design/methodology/approach At the end of the fiscal year, we determine the market value of the equity and the BM of the Euronext 100 companies. After forming the BM, we keep the organizations with the highest BM and enough financial statement data to calculate the various performance indicators. The analysis covers the years from 2000 to 2020, a period of 21 years. Findings We demonstrate that by selecting businesses with strong fundamentals, a high SCORE investor's yearly mean return can be boosted by at least 30%. Practical & social implications of research Concerning the study's weaknesses, one of them is the high SCORE of the model providing limited data, which may skew the conclusions. Originality/value This study illustrates how, when applied to a board portfolio of high book-to-market firms with growth potential, a simple accounting-based fundamental strategy can alter the distribution of returns earned by an investor.