Tag: value-creation pricing factor

The Value-Creation Pricing Factor

Value-Creation Central to the thesis is the topic of ‘value-creation’. Value-Creation, or Economic Value Added (EVA), is defined as Return On Invested Capital (ROIC) in excess of the Cost of Capital (WACC) multiplied by the Invested Capital. The findings show that historically speaking investors tend to assign a significant premium towards firms that create value…
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