Beyond Earnings: Applying the HOLT CFROI and Economic Profit FrameworkBeyond Earnings is targeted at investors, financial professionals, and students who want to improve their ability to analyze financial statements, forecast cash flows, and ultimately value a company. The authors demonstrate that reported earnings are easily gamed by accounting shenanigans and reveal how commonly used profitability measures such as return on equity can be misleading. Because earnings and P/E ratios are too unreliable for valuation, this book takes you beyond earnings and shows you how to apply the HOLT CFROI and Economic Profit framework in a step-by-step manner. A better measure of profitability results in improved capital allocation decisions and fundamental valuations. This ground-breaking book offers the first practical in-depth discussion of how profitability and growth fade, and shows how to put this information to work right away. The authors introduce their trailblazing Fundamental Pricing Model which includes fade as an adjustable value driver and can be used to value the impact of business model disruption. As the authors explain, the key to superior stock picking is understanding the expectations embedded in a stock’s price and having a clear view of whether the company can beat those expectations. The HOLT framework has been rigorously field tested for over 40 years by global investment professionals to help them make better stock picks and by corporate managers to understand the expectations embedded in their stock price. Beyond Earnings is an indispensable guide for investors who want to improve their odds of outperforming the competition. |
From inside the book
Results 1-5 of 90
... Trapeze of Performance Metrics 31 Key Learning Points 31 Measures of Corporate Performance 32 Return on Equity 33 What about Debt and Leverage? 36 Return on Assets 39 Return on Invested Capital P/E as a Valuation Metric and xi Contents.
... Debt and Equivalents Valuing Different Forecast Scenarios for Amazon in the HOLT Framework Valuing Air Liquide in HOLT Lens Quantifying the Value and Risk of a Company's CAP Key Learning Points Introduction The Worst Investment I Ever ...
... Debt Chapter Appendix: Do Equity Discount Rates Mean Revert? General Observations about Annual Changes in the U.S. Discount Rate How Does the Monthly Change in the U.S. Discount Rate Behave? Does the Discount Rate Mean-Revert? How Do ...
... debt are tax deductible in many countries, it is valuable for firms to use debt. Unfortunately, there's no such thing as a free lunch. As the proportion of debt increases, the firm's ability to service its debt is threatened due to the ...
... debt • Accounts payable • Other current liabilities Long-term liabilities • Long-term debt • Deferred taxes • Other long-term liabilities ExHIBIT 1.2 The financial economist's balance sheet equation is Market Value of Assets equals ...
Contents
Discounted Cash Flow and Economic Profit Valuation | 111 |
Value Driver Forecasting | 255 |
Index | 363 |
EULA | 384 |