Return on Invested Capital (ROIC): Dataset Support
HTML-код
- Опубликовано: 17 июл 2024
- In this session, designed to support the dataset on returns on invested capital, I explain how I estimate returns on invested capital and how to use that estimated return on capital in assessing firms. If you are interested in a longer explanation, you can try my paper on accounting returns:
Paper: papers.ssrn.com/sol3/papers.c...
Dataset:
1. pages.stern.nyu.edu/~adamodar...
I'm embarassed to admit that these bite-sized videos have been easier on my zoom zoom attention span
Thank you for posting valuable videos.
Hi Aswath you were telling the fair value of Adani Enterprise at Rs.941 today it is trading at Rs.3000 in the market
Should you bring in the tax benefits that companies get when capitalising R&D into Capex?
Actually on balance, I think professor damodaran has done very well with his stock picks. I guess there are lot of folks in the peanut gallery with nothing better to do..
Hello Professor, hope you are doing well, thanks for another great video .
My question is, what's your opinion on including other long term liabilities like deferred taxes, unfunded pension liabilities, post retirement medical costs, restructuring etc as Invested Capital?
You should always align that with cash flow.
For deferred taxes, make an estimate about how long it can last, and when the company will need to pay it gradually.
For underfunded pension liabilities, you need to make an estimate about how well the company is making investments in its pension fund and how much underfunded pension will have in the future and subtract that from your free cash flow.
Things like unfunded pension liabilities, post-retirement medical costs, restructuring, etc should not included in ROIC calculation, because ROIC measures how well the company generates return from its operating assets and those are not part of operating assets.
@@zacharychen4112 I don't know if that's that straight forward... I mean you can make the case that the pensions are paid to the employee's who work in the operation using the assets of the company...
Great Video! Thanks~~ I'm a finance youtuber too.
How do you treat impairments? - Do you just count that towards massively negative operating income in the quarter or do you adjust for that?
Does invested capital have an issue with not dealing with different management teams or companies that have dramatically changed over time? For example, if a company replaces a management team with a much better management team that drives product innovation and makes the company operate much more efficiently, it will take many years for the ROIC to reflect today's environment.
What about ROCE
Would love to see your valuation on AAPL. Thanks
Question… Master of Valuation…. How come never saw you under the list of some billionaires or Hedge Funds… Dont mean to offend you, but to try to wrap what you know and teach with practical results
That’s like saying why aren’t yoda and darth vader on the same side. May the force be with you!
@@shivax.sharma Both Darth and Yoda live and do what they teach, with practical results and outcome.
You don't have to be the best at something to be a great teacher
He mentioned in his previous interview that he is satisfied with what he has and he enjoys teaching.
@@zacharychen4112 Seems like a great failure excuse. I just wanna make clear that I do NOT mean to ofend, but to have some rational evidence that this knowledge and “tools” of Valuation actually work