-10
Un-
assigned
0%
30%
20%
10%
HOLT market segments
Quality
defensive
Hyper
growth
Quality
growth
Banks/
insurance
Defensive
value
Cyclical
value
The quality growth group is designed to identify firms with competitive advantages, above-average growth characteristics, and valuations that confirm the market's favourable outlook. These firms represent the apex of wealth creation – those with both the resources and opportunity to aggressively reinvest in highly profitable businesses.
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Risk
Quality
Growth
Value
Quality growth
low
high
Risk
Value
Growth
Quality
The hyper growth group is designed to identify early lifecycle growth companies, committed to high rates of reinvestment but showing limited profitability due to the pursuit of growth.
These firms often represent innovative products and technologies that are still scaling.
Hyper growth
low
high
Growth
CFROI
Growth
CFROI
Risk
Value
Growth
Quality
The quality defensive group is designed to identify firms with competitive advantages and consistent levels of profitability that exhibit low Betas.
These firms represent more mature, cash generative businesses.
Quality defensive
low
high
Growth
CFROI
Risk
Value
Growth
Quality
The cyclical value group is designed to identify firms with cheaper asset valuations and below average growth that exhibit above average Beta.
These firms are typically in more asset intensive industries, often have higher leverage, and their profitability and growth exhibit cyclicality.
Cyclical value
low
high
Growth
CFROI
Risk
Value
Growth
Quality
The defensive value group is designed to identify firms with low and stable levels of profitability and growth. this group exhibits very low levels of volatility and offers investors access to cheap asset valuations.
Utilities, REITs and Telecomm companies are typically represented in this group.
Defensive value
low
high
Growth
CFROI
Group of all CFROE spread earning financials into their own cohort.
Banks & insurance
