Nelson Peltz On Procter & Gamble: Sign of The Future For ROIC Laggards

Linking executive compensation to ROIC could create immediate shareholder returns and drive a long-term commitment to the lean and disciplined corporate structure that Peltz wants P&G to adopt.

Continue Reading →

5 Unappreciated Stocks With High ROICs

In order to find value, it’s time to get back to the basics of reading footnotes and focusing on economic earnings and return on invested capital (ROIC), the true drivers of valuation.

Continue Reading →

Bad ROIC Drives Bad Valuation

GAAP-Based ROIC has a significantly weaker link to valuation than our ROIC calculation, which uses our Robo-Analyst technology to make adjustments from rigorous analysis of footnotes and the MD&A.

Continue Reading →

Make ROIC Great Again

As tireless advocates for the importance of Return on Invested Capital (ROIC), we’ve been encouraged to see a growing appreciation for the metric. Unfortunately, many investors may be relying on flawed calculations of ROIC.

Continue Reading →

The Future of Wealth Management And Morgan Stanley’s $28 Billion Opportunity

The big banks still have significant advantages. Their brand names, financial capital, advisor networks, and large client bases give them the opportunity to leverage the innovations of startups and become the biggest winners in this new wealth management model.

Continue Reading →

Open Letter To Norway’s Sovereign Wealth Fund: Target Lions Gate Entertainment (LGF)

Norway’s Sovereign Wealth Fund announced that it is looking to restructure compensations plans at certain companies in its portfolio. As the fund looks for a company it can target, we offer a candidate: Lions Gate Entertainment (LGF).

Continue Reading →

How General Electric Can Prevent A $125 Billion Decline In Market Value

Based on the linear equation within, the stock is worth ~$18/share if we assume that GE can maintain its current ROIC of 3% and not accelerate growth. That downside translates into a loss of $125 billion in market cap or $13 per share (43%) for investors.

Continue Reading →

Using ROIC To Value American Express Webinar

In case you missed it, or in case you wanted to watch it again, here is our live webinar from this week. In this webinar, David Trainer, a Wall Street veteran, will discuss how undervalued American Express (AXP) is.

Continue Reading →

How To Boost American Express (AXP) Value By $50 Billion

Thesis: Management can boost the market value of American Express in the amounts below[1] by aligning the firm’s strategy and performance compensation with real cash flows or what we call return on invested capital (ROIC).

Continue Reading →

ROIC: The Paradigm For Linking Corporate Performance To Valuation Webinar

In this webinar, David Trainer, a Wall Street veteran, will discuss ROIC’s role in the capital markets, how to calculate it correctly, and how to get the most out of the metric

Continue Reading →

How To Boost Oracle’s Value By $65 Billion Webinar

In case you missed it, or in case you wanted to watch it again, here is our live webinar from this week. David Trainer will discuss how undervalued Oracle is relative to real cash flows and ROIC and more.

Continue Reading →

Open Letter to Larry Ellison: How To Boost Oracle’s Value By $65 Billion

Thesis: Management can boost the market value of ORCL in the amounts provided by aligning the firm’s strategy and performance compensation with real cash flows or what we call return on invested capital.

Continue Reading →

ROIC: The Paradigm For Linking Corporate Performance To Valuation

It’s incredible that corporate executives and the market as a whole continue to depend on such flawed numbers when we already have a measure that is clearly linked with value creation: return on invested capital (ROIC).

Continue Reading →

If ROIC Is So Great, Then Why Doesn’t Everyone Use It?

Why do investors, executives, and the financial media focus on reported earnings and other metrics such as EBITDA that ignore the balance sheet? Why aren’t executives around the world adopting ROIC in order to boost returns?

Continue Reading →