The Value Creation of Capital
The Value Creation of Capital This article examines long-term macro trends in capital productivity, the cost of capital, and equity market value creation. The analysis is based on my Master’s thesis, which studies how firm-level economic value creation relates to investment outcomes over time. Defining Value Creation Value creation – often referred to as Economic…
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The Value-Creation Pricing Factor
Master’s Thesis: Improve the Fama-French Five Factor Model ? Value-creation pricing factor is a metric derived from distance between a company’s return on capital and its cost of capital. This article summarizes the core idea of the Value-Creation Pricing Factor as introduced in my Master’s thesis on improving the Fama-French five-factor model. What Is the…
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