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 76
... industry. At the end of his speech, the audience jumped out of their seats and enthusiastically applauded. The Director of Research at a distinguished fund manager told us that he leapt up wondering why Bob Hendricks hadn't been awarded ...
... Industry Persistence: Does Industry Matter? Reversion to the Mean Competitive Advantage and Its Effect on Fade Industry CFROI Persistence Does CFROI Persistence Vary over Time? Putting It All Together: Developing a Mean-Reverting ...
... industries and over time. This is highly advantageous to corporate and fund managers when assessing profitability and the plausibility of forecast profitability. What's the upside? A better measure of profitability results in improved ...
... industries is valuable information. Better forecasts of the value drivers, CFROI, asset growth, and fade, should result in more accurate valuations and improved performance for stock pickers. We share our latest thinking and empirical ...
... industries where profitability is low and there is excess capacity, or for firms with grim prospects. THE GOLDEN RULE OF FINANCIAL DECISION MAKING Hindustan Unilever's guiding maxim is “what is good for the people of India is good for ...
Contents
Discounted Cash Flow and Economic Profit Valuation | 111 |
Value Driver Forecasting | 255 |
Index | 363 |
EULA | 384 |