Identifying Resilient Companies in the Face of High Interest Rates

📆 09/04/2024 06.54.00
📰 globeandmail

⏱ Reading Time:
27 sec. here
14 min. at publisher
📊 Quality Score:
News: 56%
Publisher: 92%

Finance Berita

Federal Reserve,Interest Rates,Rate Cuts

As the Federal Reserve delays rate cuts, the importance of finding companies resilient to high rates grows. We screen for U.S. companies with a market cap over $10 billion, low long-term debt to NOPAT ratio, and a high economic performance index.

Last week, Federal Reserve chairman Jerome Powell indicated that the central bank was not in a hurry to cut interest rates after big job gains in March and higher-than-expected inflation.

a long-term debt to net operating profit after taxes ratio lower than 1 – note that this excludes short-term debt; a future growth value on enterprise value ratio lower than 80 per cent. This metric represents the speculative value attributed to a company. We assume the company will produce its NOPAT forever without growth and we discount it using the company’s cost of capital. This computation yields an intrinsic value, which we deduct from the EV, resulting in the future growth value that we divide by the EV.

Berita ini telah kami rangkum agar Anda dapat membacanya dengan cepat. Jika Anda tertarik dengan beritanya, Anda dapat membaca teks lengkapnya di sini. Baca lebih lajut:

Tulis Komentar

Indonesia Berita Terbaru, Indonesia Berita utama

Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.

Companies are getting back control of their companiesCompanies are getting bolder in their battles to beat back proposals requiring them to disclose more about everything from environmental policies to AI.
Sumber: YahooFinanceCA - 🏆 47. / 63 Baca lebih lajut »