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No. of Recommendations: 3
So, if somewhere my figures differs from the "official figures" --most of the time, it's the case; it may indicate that my basis for calcalulation differs, that I have an error in my formulaes, or; math were reinvented. For instance the formulaes for ROE and ROA are not very complicated, and yet; I have seen different ones being used.

Hi Pierre,

I too have seen different ways of calculating ROE and ROA which take into consideration goodwill, and non-recurring numbers. I think ROIC is just the finished work on these adjustments, but concentrating mainly on the ROE formula, while taking into account all invested capital, as you stated later on in the post. I have written down for my own formula a simplified version of this. Maybe I'll post it here on the board.

I am satisfied with my outputs so far and I am ready to assist other who may be interested by EVA.

I tried to download the link, but evidently have an older version of Acrobat Reader, and couldn't download the 30 page report. After several attempts, I finally gave up. I would love to learn as much about EVA as possible.

Maths are maths and they should be considered only as such in the process of investing, a part that may also be funny (sometimes)!

I must agree, but I do love doing the math, and in a value strategy, it does have it's worth when used with discipline. JMHO

Thank you,

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