Harvard Business Review

JUNE 18, 2015

Furthermore, few PE investors explicitly use the capital asset price model (CAPM) to determine a cost of capital. We take the responses to the various questions about individual decisions and analyze how various decisions are “related” to each other by employing cluster analysis and factor analysis.

CAPM 8

CAPM Discounted Cash Flow Company Rate of Return 8

Harvard Business Review

APRIL 26, 2017

Recent analysis by Bain and SAP found that only 7% of bank credit products could be handled digitally from end to end. And our analysis suggests there are strategies that they can use to compete successfully online. Banks’ cost of capital is typically 50 basis points or less.

Banking 12

Banking Stage-Gate Credit Scoring Competitive Advantage 12

Harvard Business Review

JUNE 27, 2012

Consider these three statistics from our ongoing analysis: Nearly two-thirds of companies now destroy value. real revenue and profit growth and earning their cost of capital has steadily declined. Only 9% of companies achieved even a modest level of sustained and profitable growth. Yet almost every business aspires to do this.

Creativity 14

Creativity Long-term Kotter Cost of Capital 14

Harvard Business Review

NOVEMBER 20, 2013

Good analysis in the hands of smart managers does not automatically yield great strategy. Companies run by decisive CEOs rack up more economic profit — what’s left of operating profit after the cost of capital is subtracted – than competitors do. Retool your strategy development process.

Strategy 8

Strategy McKinsey Strategic Planning Cost of Capital 8

Harvard Business Review

AUGUST 21, 2015

As she explains in her “ Marketing Analysis Toolkit: Pricing and Profitability Analysis ,” there are five zones of elasticity. Read refreshers on net present value , breakeven quantity , debt-to-equity ratio , and cost of capital.

Price 8

Price Debt to Equity Ratio Marketing Metrics 8

Harvard Business Review

OCTOBER 11, 2013

With the company’s share price sinking and its cost of capital rising, those deals might have to be put on hold. What’s your reaction to Terranola’s silence about your analysis?” Terranola had been moving forward with A.J.’s s plan to acquire all six of the licensees that made Express machines and pods. A Veiled Threat.

Case Study 8

Case Study CFO Hedge PR 8

Harvard Business Review

NOVEMBER 25, 2013

CMOs must demonstrate and track marketing’s impact by focusing on key performance indicators (KPIs) that are important for shareholder value such as strong cash flow, cost of capital, return on capital, and operating margin. Shareholders don’t care about fans or followers unless those numbers can be tied to profit.

CFO 8

CFO Short-term Long-term Benchmarking 8

Harvard Business Review

MAY 24, 2017

Invest human capital just like you invest financial capital. For financial capital, the business world has developed concepts such as the opportunity cost of capital, which is reflected in a company’s weighted average cost of capital. Monitor it.

Human Capital 15

Human Capital Management Company ROCE 15

Harvard Business Review

DECEMBER 13, 2017

Investors punish companies with a short-term orientation by applying higher discount rates to them, which increases the cost of capital for those companies. In contrast, companies with a long-term orientation are rewarded with a lower cost of capital, which allows them to afford more innovation—a virtuous cycle.

Short-term 8

Short-term Decentralization Company Trends 8

Harvard Business Review

FEBRUARY 7, 2017

The capital charge equals the amount of invested capital times the opportunity cost of capital — that is, the return that shareholders expect to earn from investing in companies with similar risk. In this case its capital charge is $800 times 8%, or $64. As noted earlier, if all public U.S.

Long-term 8

Long-term EPS Short-term Management 8

Harvard Business Review

NOVEMBER 7, 2012

You start by using analysts' reports and other sources to gauge the consensus expectations for value drivers — sales growth, operating profit margins, cost of capital and other factors that determine cash flows.

Price 8

Price Analysis Cost of Capital Disruptive Innovation 8

Harvard Business Review

APRIL 2, 2014

The prizes were awarded “for their empirical analysis of asset prices,” but what the three had been doing looked from the outside less like a common endeavor than a not-all-that-coherent argument. Instead, what you need to do is scenario analysis. There’s a bad scenario where it doesn’t work out and you end up losing money.

CAPM 8

CAPM Discount Price Finance 8

Strategy Driven

SEPTEMBER 9, 2011

The logic of NPV is to project cash flows into the future and then discount those flows back into today’s dollars at a given cost of capital. For instance, intelligent failures can add more value than predictable successes, and low-cost experimentation trumps analysis. Net present value [NPV] is a case in point.

Innovation 50

Innovation NPV Business Model Constraint 50