• Principal objectives of the book are: (1) to explain in detail HOLT Value Associates CFROI valuation model, (2) to show the CFROI model's unique benefits, and (3) to encourage more productive thinking about issues involving the management of business firms and shareholder value.

• Because the need has never been greater for a useful description of the connections between the performance of firms and the prices of their common stock, valuation models deserve hard-nosed, critical examination.

• Feedback is crucially important to correcting erroneous knowledge and raising the reliability of knowledge, so that actions taken based on what we think we know do in fact have their intended results.

• The CFROI valuation model, with its CFROI performance metric, constitutes an exceptionally useful model for investors, business-firm managements, and corporate boards to gain a total system perspective on business firms internal operations, GAAP financial statements, and the stock market's valuation of expected economic performance.

• By minimizing accounting distortions and adjusting for inflation, CFROIs create a level playing field for measuring firms economic performance and gauging managerial skill.

The need

What is a stock worth and why? The answer to this question is critically important to investors net worth, to the management of business firms, and to the economic advancement of society generally.

This book answers this question in the form of a comprehensive valuation model increasingly used by professional portfolio managers worldwide to make buy, sell, or hold decisions on specific stocks and by senior corporate managements to...