Growth stocks are characterized by: - high P/E - high expected earning growth rate - low dvds yields They outperform value stocks during expansions. If there is a low P/E stemming from a high EPS in a boom - it is known as a Molodovsky effect. Earning yields are also high in booms. Is it correct understanding?
What is the difference between NOPLAT used in ROIC and NOPAT used in EVA? Aren’t they both equal to operating margin(1-t)?