These criteria, which appeared first in Financial communication, include Earnings per Share, Net income, ROE, CFROI, and ROCE. They in fact measure accounting Profitability and not Value creation. The problem of these indicators is that they can be easily manipulated, precisely because of their accounting nature. Accounting nature means not taking into account the Risk of the company and/or its Cost of equity. Only ROCE avoids this bias. This is the reason why ROCE has recently become the main measure of economic performance.

(See Chapter 28 investment criteria of the Vernimmen)

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