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BARBARIC VALUES
- Article from:
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Accountancy SA
- Article date:
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June 1, 2008
- Author:
- Viljoen, Wouter
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Copyright informationCopyright South African Institute of Chartered Accountants Jun 2008. Provided by ProQuest LLC. (Hide copyright information)
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How the road to value differs fundamentally between "civilized" public asset management and "barbaric" private equity funds, and how the assessment of such value may have very different outcomes.
The Civilised Way
Investment techniques
The asset management industry, trading primarily in the public equity space, evaluates listed companies and estimates the future performance of such companies through proven methodologies and techniques. These are well known, such as the price/earnings (PE) ratio, headline earnings growth, EBIT and EBITDA margins and multiples, net asset value, quick and current ratios, net debt to equity, interest cover, return on equity, return on assets, book value per ...