of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings. Calculated by dividing a company's annual earnings by its total assets, ROA is displayed as a percentage. Sometimes this is referred to as "return on investment".
ROA tells you what earnings were generated from invested capital (assets). ROA f
Capital(순운전자본)
= Current Assets(유동자산) – Current Liabilities(유동부채)
Represents operating liquidity available to a business, organization
Considered a part of operating capital
EBIT
Earnings before interest and taxes
EBIT = operating income + Non-operating income
Operating income = Revenue – Operating expenses
operating expenses = Costof Go
Ⅱ. Analysis & Valuation process
Costof Equity
The costof equity is a key ingredient of every discounted cash flow model. It is difficult to estimate because it is an implicit cost and can vary widely across different investors in the same company.
① Risk Free Rate
There can be no default risk, which generally implies that the security has to be issued by a government. Note, though,
remain a fixed percentage of sales, then its unlevered net income will also grow at rate g.
Similarly, the firm’s receivables, payables, and other elements of net working capital will grow at rate g.
The estimate of Ideko’s continuation value
can be combined with the forecasts for free
x
cash flow through 2010 to estimate Ideko’s
value today using the APV valuation model.
of the most important factor to consider.)
What is ‘Risk’?
Danger? – 위험은 투자자본의 잠재적 손실 ( Risk is Potential of losing invested capital.)
위험과 수익률의 상충관계 (Trade Off) : Potential of losing invested capital as well
as makin