财务分析与证券定价(英文)chapter12.pptVIP

Chapter 12 The Analysis of Growth and Sustainable Earnings Links What Is Growth and How Is It Valued? Growth in sales? Growth in earnings? Growth is assets? Growth in equity? Growth in price? Does a high P/E ratio indicate a growth company? Think of Growth in Residual Earnings: The ability to add value to book value through earnings. Analyzing Growth in Residual Earnings Changes in Residual Earnings are driven by: Changes in ROCE Changes in required return Changes in investment Analysis of Growth in Residual Earnings: Nike, Inc. Analysis of Growth in Residual Earnings: Reebok Int’l, Ltd. A Growth Company: General Electric, Corp. Is Nike a Growth Firm? A Cyclical Firm: American Airlines Analysis of Changes in ROCE Analyze Changes in Profitability of Operations Analyze the Effects of Changes in Financing Due to formatting restrictions, please manually replace this page with hardcopy of slide from file: ROCE Changes Analysis (slide chart) [windows name]rocech~1.ppt [dos name] Explaining the Changes in Operational Profitability Explaining ?RNOA Distinguish core and transitory components Core OI is persistent income from core business UI is unusual items that are non-recurring All items are after tax Core operating income is sometimes referred to as sustainable or persistent operating income Unusual items are sometimes referred to as transitory items Explaining Changes in Operational Profitability (cont’d.) Distinguish margin and turnover drivers of core profits where, Explaining Changes in Operational Profitability (cont’d.) The change in RNOA is explained as: Changes in Operational Profitability: Nike and Reebok Explaining Changes in Operational Profitability (cont’d.) Explain changes in profit margins and asset turnoversExplain (i) by looking at profit margin drivers GM (by segment) Selling Expenses / Sales Administrative Expenses / Sales RD / Sales Pay particular attention to GM: per unit sales prices, production costs… Expl