CSFB HOLT Announces Release of Enhanced Financial Services Model; Improved Valuation Model Based on Cash Flow Return on Equity (CFROE(TM)).
CSFB HOLT is the industry leader in delivering insights around corporate performance, valuation, and strategy. For industrial firms, it calculates corporate performance in terms of Cash Flow Return on Investment (CFROI(R)) and provides a unique perspective on valuation issues that result from strategic decisions of corporate management, enhancing the understanding of market pricing globally.
The Financial Services Model calculates corporate performance in terms of Cash Flow Return on Equity (CFROE(TM)) and includes over 3,000 financial companies globally and roughly 1,600 companies in the U.S. The nature of a business determines how economic performance is appropriately measured. This framework has been designed specifically for the financial services sector to cope with the lending model they employ. This model provides enhanced transparency for drivers of economic performance in both operations and capital management at a financial services company.
"Lending firms have always provided a unique valuation challenge for investors as decisions to employ financial leverage, while critical to the value creative process, add a level of complexity not seen in other sectors", said Amarjit (AJ) Grewal, Financial Services Sector Specialist of CSFB HOLT. "We are pleased to now offer this enhanced framework designed to help investors improve their insight into this important sector that represents 20% of the S&P 500."
About CSFB HOLT
CSFB HOLT, a division of Credit Suisse First Boston, offers clients unique insights into corporate performance and valuation, emphasizing a company's cash generating ability and overall potential for value creation. CSFB HOLT recognizes, through research and investment experience, that the capital markets set prices based on fundamentals including cash flow, not on traditional accounting measures.
Credit Suisse First Boston (CSFB) is the trade name for the investment banking business of Credit Suisse and its subsidiaries and affiliates. CSFB is a leading global investment bank serving institutional, corporate, government and individual clients. Its businesses include securities underwriting, sales and trading, investment banking, private equity, financial advisory services, investment research, venture capital, correspondent brokerage services and asset management. CSFB operates in 69 locations in 33 countries across five continents. CSFB is a business unit of the Zurich-based Credit Suisse Group, a leading global financial services company.