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
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... 183 184 184 186 187 191 191 193 196 200 204 205 208 210 212 217 217 218 221 223 III Introduction to the HOLT Approach of Estimating a Firm's. 223 226 228 228 'Adam Samson, Mamta Badkar, and Nicole Bullock, “US Retail Sector's xiv Contents.
... Firm's Discount Rate Relating the HOLT Discount Rate and Framework to CAPM and APV What Type of Discount Rate Is the HOLT Cost of Capital? Valuation Method Equivalence Capital Cash Flows Cost of Capital and Its Relationship to Debt ...
... firm's economic performance, and is becoming less relevant as intangible assets become more important than physical assets in generating economic value.” A framework that focuses on economic returns and ties them to intrinsic value is ...
... firm's asset base, stated in current dollars, the principle drivers of corporate value are the firm's economic rate of return (CFROI), asset growth rate, and its likely fade rate in profitability. These three drivers are used to ...
... firm's value, understand its competitive advantage period, and gauge expectations embedded in a stock's price. We praise the virtue of cash flow over earnings throughout the book, which begs the question: Is negative free cash flow a ...
Contents
Discounted Cash Flow and Economic Profit Valuation | 111 |
Value Driver Forecasting | 255 |
Index | 363 |
EULA | 384 |