Re: The King of Beers.
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Capital that your company can't turn into earnings, probably won't be very useful for other companies to turn into earnings either. Unless you have bad management, and then you are in big trouble too.
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Right, but I ignored that in part because those assets are worth something. Even in the worst-case scenario, somebody is going to be willing to pay something for the land, buildings, etc, and so a company with a good P/EBV will be better off respectively than another company in their sector with a worse P/EBV.
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BUD's ROIC is a very healthy 14.5% or so, making their economic profit margin over 8%.
[/ QUOTE ]I don't just want health, I want growth. I want my stock price to grow, and the quickest way for that is for my earnings to grow.
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Um. ROIC is the return on invested capital, the free cash flow divided by invested capital. Its better than earnings because both the net income and the asset base are adjusted for accounting distortions.
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