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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... 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 Made Quantifying the Magnitude and ...
... Forecast Model Conclusion Forecasting Growth Key Learning Points Median Real Asset Growth Rate The Average Growth Rate as Companies Mature Is Corporate Growth Mean-Reverting? The Sustainability of Growth Forecasting Growth Measuring a ...
... forecast to be into the hundreds of percent. Seeing an opportunity, Jeff Bezos launched Amazon as an online retail bookstore from his garage. Over the last decade, Amazon has grown its revenue to almost 13 times from where it started ...
... forecast. We demonstrate the equivalence. The goal for a company is not to increase earnings but rather to increase ... Forecasting In Chapter 8, we examine the importance of the competitive life-cycle as a framework for thinking about a ...
... forecasts. In Chapter 10 we investigate the persistence of revenue, earnings, and asset growth. We find overwhelming evidence that growth rates are volatile and quickly revert to the mean. Earnings growth is like white noise and reveals ...
Contents
Discounted Cash Flow and Economic Profit Valuation | 111 |
Value Driver Forecasting | 255 |
Index | 363 |
EULA | 384 |