Valuation, Measuring and Managing the Value of Companies - by McK.&Co, T. Koller, M. Goedhart, D. Wessels
ROIC & Growth
Organizations with low #ROIC often think they should focus on growth because growth inherently creates opportunities for increasing #ROIC. But this doesn’t necessarily happen in practice. Especially when an organization is in a growth phase, meaning rapid growth, it doesn’t…
Generally, in an organization’s growth in value, #ROIC and #Growth Rate do not work together. It depends on the specific situation. The diagram provided illustrates well that for an organization with a high ROIC, Growth is more prioritized and significant…
Source:
#VALUATION – Measuring and Managing the Value of Companies, 7th Edition
McKinsey & Company, Tim Koller, Marc Goedhart, David Wessels