Value Expectations'  Instablog

In our article  Has GM Earned A Bailout? and many others , we incorporate the use of AFG's Economic Margin  because of it's powerful insights on measuring shareholder value and calculating intrinsic values. As the demand for AFG's unique valuation and corporate performance insights has grown globally, so has the research. 

Wealth Creation: United States vs. World

Economic Margin (EM) EM = (Cash Flow - Capital Charge)/ Productive Capital. In simple terms, EM seeks to measure the ability for a company to make money in excess of a risk-adjusted cost of capital. A positive EM means a firm is earning a profit above their cost of capital while a negative EM indicates a firm is earning less than their cost of capital.

Investment Insights from your peers, Professional Investors - The Applied Finance Group would like to invite professional investors to join AFG’s Market Forecast Project so you can better understand what your peers currently think about the market and cultivate the “wisdom of Crowds” into actionable investment ideas and themes. 
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