"Here we are going to combine tool #7 Return on invested capital (ROIC), tool #8 Growth as a component of value and tool #9 the cyclically adjusted price to earnings ratio (CAPE), to get to the intrinsic value of Daimler. "Intrinsic value is about the present value of all future earnings; thus, **we have to estimate future earnings and the three tools are the core for such an estimation**. The CAPE shows the past average earnings and the ROIC shows the future expected growth coming from the business itself, while the general growth fills the shortcomings of both the CAPE and ROIC." ([Location 3854](https://readwise.io/to_kindle?action=open&asin=B07CNFFJ9J&location=3854)) --- **Tags** -- [[quotes]], [[return-on-invested-capital]], [[cyclically-adjusted-price-to-earnings]], [[growth]] **Source** -- [[202506221723 - LN - Modern Value Investing]]