Motilal Oswal 23rd Annual Wealth Creation Study - Summary
The Motilal Oswal 23rd Annual Wealth Creation Study PDF offers valuable insights into effective wealth creation strategies. In 2019, the study focused on two vital drivers of Intrinsic Value: Return on Equity (RoE) and Earnings growth. Companies generate Intrinsic Value only when their RoE exceeds their Cost of Equity. This indicates that firms with low RoE must work towards increasing their RoE, whereas those with high RoE should aim to enhance their growth.
Understanding Intrinsic Value
It can be quite challenging for companies to achieve both high RoE and significant Earnings growth at the same time. One key metric to keep in mind is the PEG (Price/Earnings to Growth) ratio; generally, a ratio below 1x is seen as a strong indication of potential market outperformance.
Market Outlook
At present, market valuations suggest that solid earnings growth is anticipated, although it hasn’t materialized yet. Thus, we might expect the market to remain somewhat soft.
For more detailed insights from the Motilal Oswal 23rd Annual Wealth Creation Study, don’t miss the chance to download the PDF for free. This will help you deepen your understanding of wealth creation strategies! 📈
