Can It Stay Ahead? · Beginner · Pro filter
Moat: what it means and how to read it
Wide, narrow or none: whether the company has earned more than its cost of capital for many years, a sign of a lasting edge competitors can't easily copy.
What is Moat?
Wide, narrow or none: whether the company has earned more than its cost of capital for many years, a sign of a lasting edge competitors can't easily copy.
A worked example
A paint company that has earned 25% on capital for 15 years while rivals earn 12% has a wide moat: dealers, brand and distribution that are slow to copy.
Why does Moat matter?
A moat helps a business keep earning high returns for longer.
How do you read Moat?
Wide is the strongest. None doesn't mean bad, just no proven edge.
A fact about the company, not a score.
The values it takes
WideNarrowNone