Return on Equity

= Net income/Shareholders’ equity

Understanding Finance

ROE measures net income as a proportion of shareholders’ equity. As with ROCE we look for businesses able to generate significant profits with limited equity investment.

Understanding Finance

Helping clients understand what we do is key to building relationships. To explain some of the industry jargon that creeps into our world, we’ve pulled together a section of our site to help.


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A core method we, as equity analysts, use to calculate and estimate the present value of the companies we invest into on behalf of clients is the discounted cash flow model (DCF).

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Understanding Finance

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