HOLT 's models can predict with precision how certain business drivers will affect CFROIs
and stock price.
Ward said, "Such key CFROI
drivers will align our interests even more closely with the interests of Maytag shareholders.
The ValueSearch(TM) platform offers comprehensive software for leveraging the CFROI
Valuation framework providing clients direct access to the tools and data necessary to achieve greater investment insight.
(Cash Flow Return on Investment) rose from 14.
is a registered trademark of HOLT Value Associates LP
and Canadian companies by sales and is based, in part, on how well they have performed in terms of cash flow return on investment, or CFROI, a proprietary metric of CSFB Holt.
CFROI measures the real cash returns on the capital invested in a company, stripped of inflation effects and accounting practices, which could distort conventional earnings.
is a comprehensive measure of overall economic performance.
measures the real cash returns on all capital invested in a company, eliminating the effects of inflation and accounting practices.
The third annual ranking rates companies based on stock return relative to the S&P 500, cash flow return on investment (CFROI
), forecasted CFROI
growth and revenue gains.
The basic CFROI
premise, which is defined by a methodology developed by HOLT, is that the stock market sets prices based on economic performance and cash flow - not on accounting measures such as reported earnings.
Yet Gillette still generates massive operating cash flow--as the CFROIs
show--with phenomenally high returns that are well above its cost of capital or market averages.