Vitor Souto

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For a business to be worth more than its invested capital, it must maintain a profit greater than the market requires. In our earlier example, the market required 10 percent. For most businesses, high profits aren’t sustainable because they attract competitors. While they may earn more over a short time, most businesses will only earn a market return—say 10 percent—on average over the full business cycle.
The Acquirer's Multiple: How the Billionaire Contrarians of Deep Value Beat the Market
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