The Most Important Firm Fundamental?
August 26, 2022 - Fundamental Valuation
What kind of firm growth should long-term investors value most? In his August 2022 paper entitled “The Role of Net Income Growth in Explaining Long-Horizon Stock Returns”, Hendrik Bessembinder relates decade compound stock returns to same-decade growth in firm net income, sales and assets and same-decade average profitability (income-to-assets ratio). His universe consists of U.S…. Keep Reading