In today’s briefing:
- Companies Should Show a Path to Accelerated Profit Growth Rather than Shareholder Returns
Companies Should Show a Path to Accelerated Profit Growth Rather than Shareholder Returns
- Metrical’s past analysis also shows that a company’s capital allocation to investors is effective in raising valuations, so a proper allocation between investment and shareholder return is a baseline.
- The correlation analysis between TOPIX and nominal GDP suggests that the shift from deflation to inflation has triggered overseas investors to focus on the further expansion of company profits.
- While average P/B and ROE have remained flat, the rise in P/E has boosted the stock recently. This suggests that further share price appreciation will require an increase in profits.
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