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Trade-off between ROIC & Growth to create Shareholders Value by Deepak Agrawal, Consultant, Independent Consultant

Trade-off between ROIC & Growth to create Shareholders Value

By : Deepak Agrawal, Consultant, Independent Consultant
Functional Area : Shareholders Value
Keywords :

growth

value

trs

roic

shareholders value

return on invested capital

return on asset

future growth

trade-off

return on capital employed

create value

Activity:  1 comments  247 views  last activity : 07 06 2010 20:18:04 +0000
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There are two ways to achieve identical P/E multiple. Return on Invested Capital (ROIC) & other by achieving High Growth.

How to make trade-off ROIC & GROWTH to create shareholders value? Would you like to know, please follow below mentioned link to see my presentation on slideshare.net.....

http://www.slideshare.net/deepakagrawal2009/tradeoff-between-roic-growth-to-create-shareholders-value

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1 comments on "Trade-off between ROIC & Growth to create Shareholders Value"
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  Commented by  Mathew Cherian, Research Associate/Analyst, Western Michigan University    | 05 25 2010 12:40:05 +0000 
Return on cash employed(ROCE) is also known as ROIC, which is none other than EBIT, earnings before interest and taxes. Ones tax planing and debt management efficiency will change this drasticsly !!.
The ratio between inverted p/e and growth should be 1, from experienced investment gurus. Inverted p/e is a surrogate for return on invested capital.
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