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6 Cards in this Set
- Front
- Back
- 3rd side (hint)
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ROIC |
Return on Invested Capital
Owner Earnings / Invested Capital |
Chris Davis of Davis Funds |
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Owner Earnings |
Operating income + depreciation + amortization of goodwill - Fed income tax - cost of stock options - unsustainable income from pension funds |
ROIC |
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Invested Capital |
Total Assets - cash + accounting charges |
ROIC |
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Acceptable ROIC |
10%+ attractive; 6-7% acceptable |
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Net-Current-Asset |
Stocks trading below the value of their assets.
Typically look to 2/3 Book Value or less |
Bargain Issues |
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5 Criteria for Defensive Investor Stock Picks |
1) Debt: No more than 67% debt : assets 2) Earnings stability 3) Current Dividend 4) Earnings Growth 5) Price: Less than 120% assets |
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