What does ROE measure?

Entrepreneurial Finance
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ISBN:9781337635653
Author:Leach
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Chapter11: Venture Capital Valuation Methods
Section11.3: Earnings Multipliers And Discounted Dividends
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What does ROE measure?

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I. Meaning

Profitability ratio is referred as the financial metrics which is used by analysts as well as investors to estimate company’s ability to earn profit, revenue, operating costs and shareholder’s equity for a specific period. It indicates company’s efficiency in utilizing assets to produce profit and shareholders value.

 

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