The ROIC & Investment Valification spreadsheet can be used to make investment decisions by comparing the efficiency of capital use between different companies. This is based on assumptions of Return on Invested Capital (ROIC), reinvestment rate, and valuation multiples. The spreadsheet then derives net income and equity value forecasts and compares returns over the long term by the company. It also provides the sensitivity of returns to the core assumptions.
Need help with which companies or projects to invest in? As a key driver of value in business, ROIC...
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