Latest posts
- S&P 500 Return Contribution Analysis: Which Stocks Are Really Driving the Index?S&P 500 return contribution analysis helps answer a simple question: which stocks are actually driving the index? The S&P 500 is usually discussed as one number. The index is up, the index is down, the market rallied, or the market sold off. But in a market where mega-cap companies account for a growing share of… Read more: S&P 500 Return Contribution Analysis: Which Stocks Are Really Driving the Index?
- When Growth Destroys Value: Capital Intensity, ROIC, and the Cost of CapitalGrowth is not automatically value creating. This post explains how capital intensity and the ROIC minus WACC spread determine whether expansion creates value or destroys it, with links to economic profit and EVA references.
- Book-Based vs Market-Based WACC: Explaining the Cross-Section of ReturnsA balanced, research-oriented explanation of book-based versus market-based WACC, why historical costs of capital can be informative in cross-sectional return tests, what the key limitations are, and why theory is still catching up.