If you got the right kind of product, you may be paying for taste, you may be paying for a mental association that you have, or service availability. That’s franchise value, then the question is how durable and big is it? I’d say that franchise is basically like a moat around ......
As covered previously (link), I discussed on how ROC worked as a form of proxy for ‘quality’ when sourcing for companies to invest in. However, given the backtests, one would notice that other than Japan, ROC does not really add much value compared to using the Enterprise Multiple as a standalone. However, what if there is a more rigorous method in conducting quality checks on companies? In this article, I would be giving an overview of an article: How to Identify Quality Companies that I have been reading and the research results I conducted on the Singapore market.
