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Informationen zum Autor DAVID A. HOLLAND is an independent consultant who serves as a senior advisor to Credit Suisse and is an adjunct professor at the University of Cape Town Graduate School of Business. Formerly, he was a managing director at Credit Suisse based in London. David oversaw HOLT Valuation and Analytics, the research and development arm of Credit Suisse HOLT, and ran their global Custom Solutions Group. BRYANT A. MATTHEWS is the senior director of research for Credit Suisse HOLT. He has over 20 years of professional experience valuing stocks and helping professional investors improve their stock selection process and valuation models. His research on understanding quality and fade has been adopted by professional investors around the world and led to numerous innovations in the flagship Credit Suisse HOLT Lens application. Klappentext Beyond Earnings is targeted at investors, financial professionals, and students who want to improve their ability to analyze financial statements, forecast cash flows, and ultimately value a company. The authors demonstrate that reported earnings are easily gamed by accounting shenanigans and reveal how commonly used profitability measures such as return on equity can be misleading. Because earnings and P/E ratios are too unreliable for valuation, this book takes you beyond earnings and shows you how to apply the HOLT CFROI and Economic Profit framework in a step-by-step manner. A better measure of profitability results in improved capital allocation decisions and fundamental valuations. This ground-breaking book offers the first practical in-depth discussion of how profitability and growth fade, and shows how to put this information to work right away. The authors introduce their trailblazing Fundamental Pricing Model which includes fade as an adjustable value driver and can be used to value the impact of business model disruption. The authors leave no doubt that building and maintaining a sustainable competitive advantage is critical to a company's valuation. As the authors explain, the key to superior stock picking is understanding the expectations embedded in a stock's price and having a clear view of whether the company can beat those expectations. The HOLT framework has been rigorously field tested for over 40 years by global investment professionals to help them make better stock picks and by corporate managers to understand the expectations embedded in their stock price. Beyond Earnings is an indispensable guide for investors who use HOLT Lens and want to improve their odds of outperforming the competition. Zusammenfassung "Step up stock selection with advanced valuation techniques"-- Inhaltsverzeichnis Introduction xix The Pricing Puzzle: Foundational HOLT Concept and a Key to Better Valuation xix Overview of Book Chapters xxvi Who Are We and What Do We Hope to Achieve xxviii I Financial Performance Assessment 1 Never Forget the Golden Rule: Pursue Strategies with Positive NPV 3 Key Learning Points 3 Introduction 4 What Do Corporate Financial Managers Do During the Day? 6 What Is Value? 8 The Golden Rule of Financial Decision Making 12 Back-of-the-Envelope Basics 15 Is the NPV Rule Foolproof? 20 The Price of Short-Termism 22 Thinking Clearly about Actions, Reactions, and Value 28 2 The Flying Trapeze of Performance Metrics 31 Key Learning Points 31 Measures of Corporate Performance 32 Return on Equity 33 What about Debt and Leverage? 36 Return on Assets 39 Return on Invested Capital 39 P/E as a Valuation Metric and Discounted Cash Flow Valuation Approach 44 Hallmarks of a Sound Economic Performance and Valuation Model 51 Chapter Appendix 53 3 Accounting to Cash Flow Return on Investment 57 <...
