[Case Study] How I & My Students Made Over 42.66% Return on Texas Roadhouse’s Stock

What you will learn in this post:

  • A detailed case study on how to apply our value investing strategy to find highly profitable stocks.
  • How I and my students easily made over 42.66% return on Texas Roadhouse's stock.
  • How to perform both fundamental analysis and technical analysis the right way!
  • A step-by-step valuation of Texas Roadhouse and how you can automate your valuation process.
  • And a lot more...

I know it’s hard for you to start investing as you have no idea about where and how to start.

And it can be even harder for you to invest your money if you don’t have a SYSTEM…

You may have already read dozens of investing books and taken many investing classes, but if you don’t know how to apply the knowledge, you are wasting your time.

That’s why I want to make something that’s extremely practical for you.

In this case study, I’ll teach you exactly how we value a company from beginning to the end...step by step!

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Return On Retained Earnings Ratio

This is an ultimate guide on how to calculate Return on Retained Earnings Ratio (RORE) with in-depth analysis, interpretation, and example. You will learn how to use its formula to evaluate a firm’s profitability.

Definition - What is Return on Retained Earnings Ratio?

The return on retained earnings ratio (RORE) measures how effectively a company uses its profits from the previous years.

The ratio can inform investors whether the company is better off investing its profits back into the company, or paying its shareholders a dividend.

A high ratio suggests that the company should invest heavily in itself, while a low ratio means a company may benefit from paying a larger dividend.

It is not commonly used by investors to assess the attractiveness of an investment.

It is mostly used as a measure to aid a management company in decision making regarding dividend payouts.

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Cash Flow Return on Investment Ratio

This is an in-depth guide on how to calculate Cash Flow Return on Investment Ratio (CFROI) with detailed interpretation, analysis, and example. You will learn how to use this ratio formula to assess a business profitability.

Definition - What is Cash Flow Return on Investment Ratio?

The cash flow return on investment (CFROI) is a metric that analyzes a company’s cash flow in relation to its capital employed.

This ratio is used by investors who believe that cash flow is the underlying driver of value in a company, as opposed to earnings or sales.

It is most informative when its compared to WAAC, because it allows investors to see the discrepancy between the amount a company paid to raise funds and the amount of return a company receives from those funds.

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Return On Debt Ratio

This is a complete guide on how to calculate Return on Debt Ratio (ROD) with in-depth interpretation, analysis, and example. You will learn how to use its formula to evaluate a company’s profitability.

Definition - What is Return on Debt Ratio?

The return on debt (ROD), also known as the return on long-term liabilities, is a metric that measures that amount of profit a company generates in relation to the amount of debt it has on its balance sheet.

It is not a commonly used financial ratio. It is more often utilized in high-level financial modeling.

However, it can provide useful information on companies who are highly levered because it may show a company’s probability of defaulting.

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