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Strategies & Market Trends : Value Investing

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To: Michael Burry who wrote (7086)5/8/1999 6:59:00 PM
From: Paul Senior  Read Replies (2) of 78464
 
Mike, am I understanding that you are making EVA calculations about a company to identify 'fair value'? If so, then I want to say I use EVA info. differently. I'm more interested in those companies that have signed on with Stern Stewart and so commit to manage their business with EVA in mind. (Or,if not these original EVA guys, at least in a similar EVA-type outlook.) There's some evidence that such companies do better (stockwise) than their peers who do not manage by EVA (The study(studies) which prove the method are often developed and reported by Stern Stewart -g-). Still, companies using EVA as a driver makes logical sense to me. I consider it a plus when trying to evaluate whether to purchase a company stock. Paul
ps. There's an EVA thread on SI but it's dormant.
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