Question: How do you estimate the potential margin and capital turnover
How do you estimate the potential margin and capital turnover for a young, high-growth company? Are the company’s current margin and capital turnover relevant?
Answer to relevant QuestionsWhat more could be done by boards of directors and shareholders to ensure that managers pursue long-term value creation? Apply the conservation of value principle to acquisitions. Why do most young, high-growth companies have negative earnings? What are the potential reasons cyclical companies invest cyclically rather than countercyclically? In a bank valuation, the amount of current loan loss provision is not deducted from the DCF result. Why is it then important to analyze the adequacy of the bank’s current loan loss provisions?
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