In today’s briefing:
- Higher ROE & ROA Are Keys to Higher Valuation, but This Wasn’t Easy for Companies with Low Valuation
Higher ROE & ROA Are Keys to Higher Valuation, but This Wasn’t Easy for Companies with Low Valuation
- Over the past year, Tobin’s Q increased slightly for listed companies as a whole; companies that increased their ROE and ROA increased their Tobin’s Q. vice versa.
- Companies that originally had high stock valuations and high ROE and ROA increased their valuations by becoming more profitable. Raising ROE and ROA is the key to higher valuations.
- For companies with low valuations, it wasn’t easy to raise ROE and ROA solely at TSE’s request. Some of companies whose stock valuations have fallen will go private through MBOs.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
