Re:The Superinvestors of Graham-and-Doddsville (1984)
by aaavl2821 on Tuesday August 14, 2018 @03:26PM
(#17761059)
Balance sheet metrics can still be important. Return on invested capital (ROIC) is a very popular "value" metric showing what a business can earn by investing in its business. The denominator is calculated from the balance sheet
Basically, if you are a good business with a strong moat, you will be able to invest in your business at a compounding rate. ROIC is a way to measure this
Basically, if you are a good business with a strong moat, you will be able to invest in your business at a compounding rate. ROIC is a way to measure this