Navigation

 
 

Education

This collection of tutorials is designed to help you understand how our CFROI® methodology works. Begin by working your way through the 'Learn the Methodology' agenda in the order they are listed, and then progress to the 'Get the Details' agenda.

Learn the Methodology

Learn the Methodology

This agenda provides an introduction to our unique CFROI® Corporate Performance/ Valuation Framework. View the tutorials in the order they are listed:

CFROI: The HOLT Measure of Return on Capital

What is CFROI, how is it calculated, and why is it a clearer and more consistent measure of performance than traditional accounting measure?

Sales, Margins and Turns: The Primary Drivers of CFROI

What influences the CFROI level? How can you quickly determine the specific drivers of corporate performance?

Understanding How CFROI is Used in Valuation

How is CFROI used to value companies? How can you judge whether the market is being optimistic or pessimistic about a company’s prospects?

Fade: How a Company’s Prospects Change Over Time

HOLT builds a concept of mean reversion, or “fade,” directly into its valuation model. How does Fade influence a company’s future CFROI and growth levels?

Next Steps

Once you have completed the 'Learn the Methodology' tutorials, please go to the top of the page and click on the 'Get the Details' tab, where you will find tutorials that further explain the concepts you have covered.

Get the Details

Get the Details

This agenda builds on the concepts learned in the Methodology, providing details behind HOLT's CFROI Corporate Performance/Valuation Framework.

Understanding HOLT’s Market-Derived Discount Rate

HOLT’s approach to establishing a market-derived discount rate for each company is unique. How is the discount rate is calculated and how does it reflects the market’s current expectations of future cash flows.

Operating Leases: How HOLT Tackles a Common Accounting Distortion

How does HOLT capitalize operating leases, removing a common distortion created when traditional accounting treats these leases as off-balance sheet items?

Research & Development: How HOLT Removes a Routine Accounting Distortion

How does HOLT capitalize R&D expenses, removing a common distortion created when traditional accounting expenses these costs in some jurisdictions and allows them to be capitalized as assets in others?

Goodwill: How HOLT Removes an Important Accounting Distortion

How does the HOLT methodology provide a true comparison of a company’s operating performance relative to peers regardless of its acquisition history?

CFROE: The Metric For Financial Firms

In this tutorial, you’ll learn about CFROE (Cash Flow Return On Equity) and how to use this distortion free metric to analyze banks and other financial firms.

Secondary Content

Why HOLT?