In “Banks Undervalued: Different Lens, Same Conclusion”, Wells Fargo Securities’ analyst Mike Mayo leverages our research to broaden his coverage and strengthen his thesis. The report shows:
- New Constructs improves the traditional return on equity to price to book analysis by translating accounting earnings to economic earnings.
- Return on invested capital (ROIC) is superior to ROE.
- The financial industry, especially banks, appears undervalued compared to other industries.
The report exemplifies the benefits of real-world application of our Robo-Analyst technology: more coverage and better insights.
Through detailed examples, Mike Mayo underscores the Ernst & Young white paper that shows the material superiority of our research, in particular ROIC.
This article originally published on December 12, 2017.
Disclosure: David Trainer and Kyle Guske II receive no compensation to write about any specific stock, style, or theme.