Note on Value Drivers

Shows a framework for analyzing strategic decisions. Takes for granted the practice of value-based management whereby managers value as the primary criterion in making financial, strategic or investment decisions. A simple valuation model that shows how equity value to three value drivers of profitability and reinvestment horizon advantage is related. Also presents a numerical example, the model and empirical evidence on the relationship between value added show support … Read more »

Shows a framework for analyzing strategic decisions. Takes for granted the practice of value-based management whereby managers value as the primary criterion in making financial, strategic or investment decisions. A simple valuation model that shows how equity value to three value drivers of profitability and reinvestment horizon advantage is related. Also presents a numerical example, the model and empirical evidence on the relationship between value creation and value drivers illustrate support.
«Hide

from
Benjamin C. Esty
13 pages.
Release date: 07 April 1997. Prod #: 297082-PDF-ENG
Note on Value Drivers HBR case solution