Income Statement
Net Investment Result
A holding company's top line: income and fair-value gains on its investments.
Definition
For an investment holding company the top line is what its stakes earned in the year: dividends, interest and gains or losses in their fair value. It can be negative in a year the portfolio falls.
Why it matters
It swings with markets, so one year says little; the table shows 5- and 10-year medians, not a growth rate across a sign change.
How Standard Equity uses it
Shown as Inv. result in the first row of the main table for holding companies. Margins and growth are shown only on a positive result; otherwise the cell is marked not meaningful. We make no projections of our own for these companies, only analyst consensus when there is some. Gross margin, FCF, EV multiples, ROIC, EV/EBIT and FCF per share are dashes: the stakes are the business, and the P/TBV and TBV/sh that banks show in those two rows would repeat P/B and Book/sh.
The metric
| Category | Income Statement |
|---|---|
| Unit | $M |
| Applies to | Holding companies only |