Economic Profit Metrics

Economic profit is the company’s profit after deducting opportunity cost

Here, we take Cash ROCE to calculate Profit, which is CFO / (Equity + Debt)

And as Opportunity cost, we take Nifty’s average 10-year rolling return, as it is a return available at a press of a button, and every good business have to generate a return more than Nifty

Published by Aakash and Meet

I am Aakash Raotole I am currently doing Bcom from Dr. Patel and Rb Patel commerce college I am currently studying at finnacle investment academy Recently done distance internship with windrose capital, Pune - for a period of 14 weeks I am Meet Bhatt Completed HSC in commerce Now studying finbridge program at finnacle investment academy and Bcom externals I had completed CFA institute's investment foundation course and distance internship with Windrose capital, Pune - for a period of 14 weeks

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