There are multiple problems with this approach in my opinion. First, both depends on the accounting principles, earnings and the capital deployed. PE is a linear function, effects of ROIC are exponential. I would prefer ROIIC, but it is very hard to calculate.
I like the PE, ROIC, Net income growth, and MOAT. Great write-up.
Glad you enjoyed the write-up! Appreciate your feedback!
There are multiple problems with this approach in my opinion. First, both depends on the accounting principles, earnings and the capital deployed. PE is a linear function, effects of ROIC are exponential. I would prefer ROIIC, but it is very hard to calculate.