Beyond Earnings: Applying the HOLT CFROI and Economic Profit Framework

November 1, 2020
Beyond Earnings: Applying the HOLT CFROI and Economic Profit Framework

Beyond Earnings is targeted at investors, financialprofessionals, and students who want to improve their ability toanalyze financial statements, forecast cash flows, and ultimatelyvalue a company. The authors demonstrate that reported earnings areeasily gamed by accounting shenanigans and reveal how commonly usedprofitability measures such as return on equity can bemisleading.Because earnings and P/E ratios are too unreliable forvaluation, this book takes you beyond earnings and shows you how toapply the HOLT CFROI and Economic Profit framework in astep-by-step manner. A better measure of profitability results inimproved capital allocation decisions and fundamentalvaluations.This ground-breaking book offers the first practical in-depthdiscussion of how profitability and growth fade, and shows how toput this information to work right away. The authors introducetheir trailblazing Fundamental Pricing Model which includes fade asan adjustable value driver and can be used to value the impact ofbusiness model disruption.As the authors explain, the key to superior stock picking isunderstanding the expectations embedded in a stock’s price andhaving a clear view of whether the company can beat thoseexpectations. The HOLT framework has been rigorously field testedfor over 40 years by global investment professionals to help themmake better stock picks and by corporate managers to understand theexpectations embedded in their stock price.Beyond Earnings is an indispensable guide for investorswho want to improve their odds of outperforming thecompetition.