SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Daniel Chisholm who wrote (8874)11/3/1999 11:19:00 PM
From: cfimx  Read Replies (1) of 78627
 
>>What I can't get a good analytical handle around is, how much of a premium should I rationally pay for an exceptionally high and sustainable ROE? <<

i hate to say this but you can get to this figure using a DCF analysis. You would need to plot out the cap ex, d & a, and working capital needs for a number of years. If the high ROE indeed goes out a long way, you will be surprised at what you can pay for a company with these economics, and still have it make economic sense. I use a spreadsheet for this. You know who can do it in his head. <g>.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News