Subject: Re: profitability subsumes beta and value as a factor
There are 2 versions of the paper, one free and one costing $5. Profitability is:

(REVT−COGS−(XSGA−XRD)−XINT) / (BE+MIB)

REVT is Sales
COGS is Cost-of-Goods-Sold
XSGA is selling, general, and administrative expenses
XRD is R&D expenditure
XINT is interest expense

BE is book-equity
MIB is minority interest


So, roughly: (net income + R&D) / equity
or, ROE + R&D/equity