Re: What\'s Up With BUD - can someone explain this?
My guess is share buybacks or possibly high dividends. If BUD spends more money buying back shares or paying dividends than it earns, it gets the extra money from it's assets (or borrows it, increasing liabilities). Both shrink book value.
If earnings continue to rise, BUD earns more on a smaller equity base, driving ROE through the roof. This can be very good for shareholders as long as they don't borrow too much and overleverage the company.
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