script/profitability_notes.R

In olaoritsland/finmod: What the Package Does (One Line, Title Case)

# Profitability analysis --

# ROE
# Operating return (ROIC = NOPAT/IC) + Non-operating return
# Breakdown (ROIC = NOPM * NOAT)+ (Non-op return = Spread * FLEV)
# internal (EVA - WACC) and external (comparables) benchmark



# Inspiration from AI analytics
# Discount rate (WACC) using factors?

# However, the EVA calculation relies heavily on the amount of invested capital 
# and is best used for asset-rich companies that are stable or mature. 

# Companies with intangible assets, such as technology businesses, 
# may not be good candidates for an EVA evaluation.