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28-10-2013, 12:01 PM
My CFA is rusty now but EVA is to compare your cost of capital vs your return on capital. The former is WACC and the latter is ROIC. ROIC is more akin to ROA than ROE because it is the return on total capital which includes all forms of financing including equity, debt or hybrids and even WC.
Fundamental research is primarily concerned on how much cashflow can be derived from the amount of capital that is being put in. The rest are all approximations to this end.
Fundamental research is primarily concerned on how much cashflow can be derived from the amount of capital that is being put in. The rest are all approximations to this end.
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward
Think Asset-Business-Structure (ABS)
Think Asset-Business-Structure (ABS)