Franchise Value & Competitive Advantage Analyzer

Decompose stock price into tangible book value, steady-state earnings value, and franchise value (excess returns from competitive advantage). Quantify the franchise value component using ROIC vs. WACC spread and reinvestment rate.

Principal ($)
Annual Rate (%)
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$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.
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How It Works

Decompose stock price into tangible book value, steady-state earnings value, and franchise value (excess returns from competitive advantage). Quantify the franchise value component using ROIC vs. WACC spread and reinvestment rate

Each component has a specific meaning:

  • Competitive advantage) — The competitive advantage) recorded for the scenario being assessed.

Note: Interpret the franchise value result against the thresholds and context described above.

How to Use

Enter the competitive advantage) for the scenario you are assessing. Decompose stock price into tangible book value, steady-state earnings value, and franchise value (excess returns from competitive advantage). Quantify the franchise value component using ROIC vs. WACC spread and reinvestment rate. Use the franchise value result to inform your calculation.

Frequently Asked Questions