Equity value forecast helps in making investment decisions by providing an estimate of a company's worth in the future. This can be used to compare the efficiency of capital use between companies. It is based on assumptions of Return on Invested Capital (ROIC), reinvestment rate, and valuation multiples. By deriving net income and equity value forecasts, potential returns can be compared over the long term. The sensitivity of returns to these core assumptions is also provided, offering further insight into potential investment risks and rewards.
Need help with which companies or projects to invest in? As a key driver of value in business, ROIC...
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