In today’s briefing:
- Higher Valuations Require Increased Return on Capital to Attract the Attention of Overseas Investors
Higher Valuations Require Increased Return on Capital to Attract the Attention of Overseas Investors
- Even with the 9% increase in share repurchases, the high level of cash on hand will likely be further built up, given the increase in cash flow.
- Companies that have increased their valuations over the past year have further increased their valuations by growing their traditionally high valuations and ROE and ROA.
- Cash allocation is a major challenge for all companies. Many companies have a payout ratio of 30%, and they have too much cash on hand relative to sales.
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