I didn't say the roe is the best way to value a company but what it does to is provide a measure of how much actual distributable return the company can generate per dollar invested in the business. EBIT/EV ignores the companies ability to grow earnings, and is fundamentally flawed as its using market capitalisation which is effectively share price in order to arrive at an estimate of its self.
ALU Price at posting:
$12.55 Sentiment: Buy Disclosure: Held
