The valuation school ->

DUPONT
.

ANALYSIS
-
Most simplest Explanation Ever!)
-

With Practical case studies

 ->
The valuation school

Beforestart
Dupat
understand few
we have to

concepts.
 -
1. Return on
Equity
-

You and a friend starts

momos business

Both of you invested 1000 each.

-

to
buy flour, veggies, all etc.

-
At the end of the
day you
made "Net Profitof of 2700

How much profits

100 70%->
ROE
you made for
=

every - Invested
ROE -
Practical Example of ICS

IE'crows)
Net Profit of TCS for FY2023 3
=

Shareholder's fund as on March's:12

-

(Equity share capital + Reserve)

ROE Net
=

Profit/Shareholder's fund
42303/90442
=

=51%
-

for
every of shareholder's money.
TCS has generated 46 paisa.
Do you
to
learn
want
of make
models
amazing -
like This

Read till the End. ->

 2. Return on Asset -

-
You have expanded the manos

business and cart, intensils

bought a

etc.

total
- Now
you have Assets
of 1500
-

Your Net
profit is 800

-Return on Asset =
800/100 =
L
-

How much you

are earning on each

Invested.
Practical -

Return on Asset of TCS

IE'crows)
Net Profit of TCS for FY2023 -3
Total Asset of TCS as an
March'2319
An Net Profit/Total
Asset: Asset
42303/142859-5
=

is each
TCs
earning 29 paisa on

Rupee invested in business.

 -

3. MOAT.

Most is the
advantage of business
-

through which its

earning above normal

Pricing Qwer -
is a most
(Iggre]
operating Ficiency - is a moot [DRT]
is most(EA)
byofiney
-
a
 What does
deport Analysis do?
It breaks down ROE
- & ROA

-
so one can
understand the

reason
why ROE/ROA is increasing
or
decreasing.
-

Dupont Analysis is crucial to

understand most.
 me/shareholder

↳forasmade
financial
I
here
Turnover e

Total
Equity
tancing toperating ↓
equity
multiplier
 Lets understand with ample
of DMART

ROE decreased
-

-> marging
Increased
-> Efficiency
constant

-> financial
t
everage
Here, the ROE is reduced; the reason
behind it is reduction in financial
Leverage (Good thing) a not 4 in
marging
 ROA
-> Increased

margins
-> Increased
-> Efficiency
constant

The Reason for Increase in ROA is

due to Increase in Margin while

operating efficiency is constant.

is with
most Increase in Profit same
Asset Base
Do you want to learn concepts
of Dupart in depth? and prepare
Dupont Analysis model from scratch?
this
watch
session
2
hows
-

-
5 The valuation school
 The valuation schoo

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