Two Clocks, One Stock: Measuring When Software Valuations Diverge from Operational Reality

Inside this white paper:

• A systematic map of the entire IGV software universe: How to place any software company on two dimensions simultaneously — where its trailing PE sits in its own three-year history, and where its sales efficiency, revenue growth, and FCF margin sit in their own three-year quarterly history.
• The backtest that validates the map: A systematic test across 100+ IGV names over 2020–Q1 2026 showing that the Dislocation quadrant — cheap pricing, strong operations — has historically produced a 91% win rate against the IGV benchmark over 13 weeks. We explain why this is not a crash-recovery strategy, why the signal fired three times in the 2021 bull market at 100% accuracy, and what the current Q1 2026 sell-off looks like through the framework's lens.
• What comes next — the weekly scan: The whitepaper introduces the framework and validates it against the historical record. Beginning in 2026, we will publish the full scored table — V and Q readings for every IGV constituent, updated weekly — in the research letter. This paper is the methodology behind that scan: what the scores mean, how they are constructed, and what the historical record shows when they reach specific combinations.

To access the white paper, please complete the brief profile below. The PDF will be available immediately upon submission.