X-value normalizes stock prices by the recursive out-of-sample expectation of each firm's net income, estimated by industry from its financials, while ignoring book equity. The resulting X-value factor is unspanned by the five Fama/French factors individually or in different combinations, and spans the value and investment factors. Its Sharpe ratio of 0.57 is the largest among the five factors, compared to 0.39 for value, for example. The paper "fixes" the value strategy by simply following the (correct) theoretical explanation of the value premium.