Executive Summary
What is this report about?
GCC best capital allocator report broadly identifies companies that have best allocated capital and assesses if better capital allocating firms are rewarded in terms of their stock price performance. We have analyzed the ROIC across categories such as of market cap, at country level and at broad industry level. We have analyzed the ROIIC, which measures the return generated on the additional invested capital, to better understand the correlation between efficient capital allocation and price return.
Who will benefit and why?
The report stands to benefit any individual or organization who are related to equity market particularly those who closely analyze the fundamentals of a company, including buy and sell side firms, individual companies, institutional investors and retail investors amongst others. This report would help to broaden understanding about the relation between ROIC and stock price returns and getting familiar with factors that determine this relationship.
How exhaustive is this report?
It is about 18 Pages including tables/charts.
FAQ
Key Questions Addressed
- Why Capital allocation matters?
- What metric to adopt for the measurement of capital allocation?
- Where does GCC country and sectors stand?
- Do stock markets reward efficient capital allocators?
Table of Contents
- Overview
- Why Capital allocation matters?
- What metric to adopt for the measurement of capital allocation?
- GCC Country and Sector wise ROIC
- Do stock markets reward efficient capital allocators?
- Do firms that allocate capital poorly get penalized by the stock market?
- Companies showcasing inverse relation between ROIC and Price return
- Conclusion
- Appendix
