An alternative view on equities valuation
Each year Juno Partners conducts an analysis of Australia’s top listed companies to determine which have created or destroyed the most wealth and how they did it.
For institutional investors, our Wealth Creators Report offers a fresh perspective on the performance and valuation of Australia’s top listed companies, complementing both value and growth investing styles.
For 300 of Australia’s largest listed companies the Wealth Creators Report answers key questions, including:
- What return on capital and capital growth rate must the company deliver to justify current valuations?
- How much would market expectations of returns and growth have to change to justify a substantial share price rerating – up or down?
- How does that compare to the company’s returns over the past 20 years?
- How does that compare to peer and region wide performance over the past 20 years?
- To what extent have the company’s competitive advantages delivered higher returns for investors?
In preparing our analysis we make a number of adjustments to IFRS reporting to improve the accuracy and usefulness of the data, including adding back one-off items, capitalising research and development expenditure and putting the value of non-cancellable operating leases on balance sheet.
The report also includes estimations of each company’s cost of capital and Economic Profit (or Economic Value Added).
To maximise its value to our subscribing investors, distribution of the Wealth Creators Report is limited to ten subscribers annually who receive the report in November each year and have exclusive access to it until April the following year when it is made available to corporates, governments and the media.
A summary of the findings of our most recent Wealth Creators Report is available here.
To discuss subscribing or gaining access to the Juno Partners Wealth Creators Report, please contact us.
We also provide bespoke analysis on individual corporates for institutional and corporate clients drawing on our proprietary Wealth Creators methodology.
An alternative view on listed company remuneration
Our deep understanding of valuation matters, combined with practical experience developing and implementing reward structures for senior executives of listed companies puts us in a unique position to advise institutional investors on the behavioural and decision making implications of incentive programs.
We develop and implement frameworks for our institutional clients to assess the remuneration structures of public companies and identify to what extent they encourages value adding or value destroying decisions.