Session 9: Growth Rates - Historical, Outside and Fundamental

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In this session, we continued our discussion of growth by completing our assessment of past growth , looking at the limitations of analyst estimates of growth and then examining the fundamentals that drive growth. Starting with a very simple algebraic proof that growth in earnings has to come either from new investments or improved efficiency, we looked at how best to estimate growth in three measures of earnings: earnings per share, net income and operating income. With each measure of earnings, the estimation of growth boiled down to answering two questions: (1) How much is this company reinvesting to generating for future growth? (2) How well is it reinvesting? (3) How much growth is added or lost by changes in returns on existing investments?
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Thanks a lot for the lecture.
How can reach you I have some questions please.

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