A More Fundamental Approach: The ROIC and Reinvestment Rate-Driven DCF
Growth (g) = Return on Invested Capital (ROIC) x Reinvestment Rate (RR) × Actual Conversion Efficiency
Absolutely ATC, would assume their Actual Conversion Efficiency is very close to 1 though. Do you have any tangible estimate for this in CSU case?
Conversion Efficiency TTM
= (100×((242.18+140.25+192.04+304.47)÷(77.50+166.44+397.16+223.69)-1))÷(9.28×(1-0.1326))
= 0.2032723869
= 20.32723869%
.
Quarterly Net income metric and ROIC Ratio are taken from tradingview.
Growth (g) = Return on Invested Capital (ROIC) x Reinvestment Rate (RR) × Actual Conversion Efficiency
Absolutely ATC, would assume their Actual Conversion Efficiency is very close to 1 though. Do you have any tangible estimate for this in CSU case?
Conversion Efficiency TTM
= (100×((242.18+140.25+192.04+304.47)÷(77.50+166.44+397.16+223.69)-1))÷(9.28×(1-0.1326))
= 0.2032723869
= 20.32723869%
.
Quarterly Net income metric and ROIC Ratio are taken from tradingview.