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  "notes": "The slide outlines the mathematical derivation of target multiples based on ROIC, WACC, and growth rates, extending into a two-stage DCF-style formula.",
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      "text": "More realism is introduced by using a two-stage approach",
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      "text": "1. An initial growth period with a specified level of growth and return on equity over a limited time horizon, followed by 2. A terminal phase in which no further value is added.",
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      "text": "P/E = (ROE-g / ROE(COE-g)) * (1 - ((1+g)^n / (1+COE)^n)) + (1/COE * (1+g)^n / (1+COE)^n)",
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      "text": "The assumption in the formulas above that value-adding growth will continue into perpetuity is suspect. Competitive pressures and the size effect invariably check growth rates. To cope with this, we can use a two-stage model.",
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      "text": "EV/sales, EV/EBITDA, EV/EBIT, EV/NOPLAT, EV/invested capital, EV/capacity unit, Price to earnings, Price to book value, PE to earnings growth",
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      "text": "Table 7: 'Fair' or Target Multiples",
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