A Masterclass on Return on Equity - How to interpret ROE?

In this video, we cover one of the most important concepts of finance.
Return on Equity.
But how do investors interpret it?
Is 20% a good number, or 80%?
Is falling ROE always bad?
HUL's ROE declined from 80% to 20% in 2021!
But that happened due to its Equity base increasing, due to the share swap in the GSK Consumer acquisition.
We decode in this video!
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[@user-fi7vi5mz9h]

I don't know, why this video has not hit many views! Quite honestly, this is a gem! After clearing CFA L-1 exam, and working as a finance analyst for last 8 months, I could really feel gaps in my knowledge. But, this video is one of the prime example of filling those gaps! A great work indeed! BIG FAN, SIR!

[@karthikeyans3]

Really a great video. Thanks.

[@FinShiksha]

You are welcome!

[@rachitsingh9473]

if i want to invest in a company today , should I use ROE or Earnings Yield as I am investing based on current share price value.