Sunday, 8 November 2026 Weekly snapshot · Not investment advice standard-equity.report
Breakdown Tables
Spread over hurdle / Cost of Equity
Return on capital minus the discount rate the fair value uses.
Definition
The third Reinvestment row subtracts the company's hurdle rate from the return in the row above. Positive means new money has earned more than it costs; negative means it has not.
Formula
Return on capital − hurdle rate
Why it matters
Reinvesting at a return below the cost of capital destroys value however fast the company grows.
How Standard Equity uses it
The hurdle is the WACC when the fair value is a discounted free cash flow model, and the cost of equity for every other model (banks, insurers, REITs). The row is labelled with the one used. If the stock has no fair value, it shows n/m.
The metric
| Category | Breakdown Tables |
|---|---|
| Unit | pts |