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Learn/Valuing public equities
LearnValuing public equities

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B Basic

  • Which multiple, and why8m
  • The earnings model, line by linePro10m
  • ROIC, growth, and the multiplePro9m
  • Sector lenses: banks, REITs, software, energyPro9m

A Advanced

  • Sum of the parts and the holding company discountPro10m
  • Cyclicals and normalized earningsPro9m
  • Capital allocation mathPro10m
  • FlashcardsPro0/14
  • Basic quizPro80% passes
  • Advanced quizPro80% passes
  • Terms

ROIC, growth, and the multiple

Growth is worth something only when each dollar reinvested earns more than it costs. One formula ties return on capital, growth, and the multiple together.

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