Investment Insights
June 27 2023

Can Quality Stand Up to Inflation?: Inflation, ROIC and WACC

20 min read

Steven D. Bleiberg, Managing Director, Portfolio Manager, TD Epoch; Mark Matten, Senior Associate, Research Analyst, TD Epoch

This paper talks about the impact that inflation can have on two metrics that TD Epoch believes are of particular importance – Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC). The piece also explores which matters more to investors, the impact on ROIC or the impact on WACC.