Evaluating Investment Returns Into the Future by using Return on Capital

Return on Capital Employed
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			              Evaluating Investment Returns Into the Future by using Return on Capital
brendan daly, Financial Consultant, Ireland, Member
If you can invest in firms with a high return on capital at bargain prices, you'll enjoy investment success.

The key to investment success over the long term is to buy companies with a high return on capital and buy them at bargain prices. These companies will display a high earnings yield and if you consider that they can maintain a high earnings yield into the future, then you should enjoy investment success as long as you are prepared to invest long term. 

It seems to me, though I haven't tested it, that firm's with a strong competitive advantage are more likely to maintain high earnings into the future. I would be interested in programs that would enable this analysis.
			            
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	                            Return on Capital Employed
	                          
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	                                ForumAcceptable Level of ROCE
What is Return on Average Capital Employed (ROACE). Definition
Versions of ROCE Formula
ROCE Lower than Borrowing Rate
Evaluating Investment Returns Into the Future by using Return on Capital

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