How does a HIGH ROE justify a LOW (w)? isn’t a company with a high ROE considered competitive and thus sould have a higher w?
This was dicussed yesterday. Try to run a search and see if you come up with it. If not I am sure everybody will jump in and help.
Did you find it Usif?
I didn’t see the discussion but I assume high ROE has low persistence factor because high returns cause more competitors enter the market.
That was the basic discussion, but it was bounced around a little.
Here is the thread Usif. http://www.analystforum.com/phorums/read.php?12,727411
Hey mwvt9… thanks buddy