Mudit - here we asssume that high ROE, ROCE etc gives higher than index returns and hence assume that it will beat index.
However most stock market return occures when company turn to good from bad. Or when low ROE / ROCE company progressed to normal or high ROE.
Once company is good stock price in factored it as good company hence return will be normalised.
And in same line high ROE company become stedy or lower ROE than most return will be destroyed. Just my POV
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