Tesco
Beyond Earnings
Book

Beyond Earnings

Applying the HOLT CFROI and Economic Profit Framework

David A. Holland and Bryant A. Matthews
Wiley, 2017

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Editorial Rating

8

Qualities

  • Analytical
  • Applicable
  • Background

Recommendation

Each quarter, publicly traded firms make earnings announcements and provide guidance to Wall Street analysts. For shareholders and market experts, these declarations are the holy grail in determining the price and value proposition of a company’s stock. But financial professionals David Holland and Bryant Matthews argue that investor reliance on the earnings call misses the important financial information packed away in corporate statements. Investors, analysts and executives will find a deep reservoir of financial knowledge in this insightful text on the Credit Suisse HOLT methodology.

Take-Aways

  • Investors and analysts should assess a company through the lenses of positive or negative net present value and cash flow.
  • If a CEO’s decisions don’t alter the expected cash flows of the business, no fundamental change to its intrinsic valuation occurs.
  • Investors assessing a company’s prospects should rely on the HOLT CFROI model as a superior tool.

About the Authors

David Holland is a consultant to Credit Suisse and an adjunct professor at the University of Cape Town Graduate School of Business. Bryant Matthews is the senior director of research for Credit Suisse HOLT.

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