Market
Cycle Investment Management
by
Steve
Selengut
Whatever happened to the Stock Market Cycle; the Interest Rate Cycle; Baby Jane? How did Wall Street get away with pushing these facts of financial life down the basement stairs? Most investors, I'm beginning to believe, and all financial advisors, media representatives, and market gurus have abandoned these fascinating curves for the comfort of a straight-edged twelve-month playing field... simple, yes; realistic, not. I have to wonder if things would be different with a more investor-friendly tax-code, but that would be far less lucrative for The Wizards...
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Return
on Capital (ROC), Return on Invested Capital
(ROIC) and Return on Equity (ROE): Measurement
and Implications
by Dr.
Aswath Damodaran
If
there has been a shift in corporate finance
and valuation in recent years, it has been
towards giving "excess returns" a more
central role in determining the value of
a business. While early valuation models
emphasized the relationship between growth
and value - higher growth firms were assigned
higher values - more recent iterations
of these models have noted that growth
unaccompanied by excess returns creates
no value. With this shift towards excess
returns has come an increased focus on
measuring and forecasting returns earned
by businesses on both investments made
in the past and expected future investments.
In this paper, we examine accounting and
cash flow measures of these returns and
how best to forecast these numbers for
any given business for the future.
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