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An investor's guide to valuation. July 7, 2023

Motley Fool Money

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How to Earn a 10% Return on Equity

If I was to earn a 10% return on that house, the asset of the house worth a million dollars. That's astonishing even though the asset itself only returns me 10%. Now, those are very generous numbers. But whatever number you use, you're up for a long period. When it comes to companies, the same thing is also true. And this is the crux of why these metrics need to be considered in consultation with your investment team. It's not you two timid if you're only 10 to one. What are you doing, man? Let's assume 20 to one. Let's assume for now, although we'll come back to it. Not in this country.

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