Harvard Business Review
NOVEMBER 7, 2011
In the late 1990s, we presented the Gretzky metaphor to a division of a large, global bank. Three years ago we determined that two of our key customer segments, Small Businesses and Affluent Consumers, would want PC banking in the next 2-3 years. And using net-present-value estimates for "beginning" ideas is nuts.
Harvard Business Review
JUNE 28, 2016
Also, as we explained in an earlier article , we believe that being an established CEO of a small firm involves much less angst than being a senior member of a consulting, investment banking, or private equity firm. The bank and investors get paid off before the CEO gets any cash for the carried interest.
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Harvard Business Review
JUNE 8, 2018
In our recent HBR article , we argued that financial statements fail to capture the value created by modern digital companies. Since then, we interviewed several chief financial officers (CFOs) of leading technology companies and senior analysts of investment banks who follow technology companies.
Harvard Business Review
DECEMBER 22, 2010
Consider, for example, that the estimated net present value of obligations under the Social Security system is approximately $8 trillion. The total value of explicit loan guarantees is well over $10 trillion.
Harvard Business Review
DECEMBER 2, 2010
The higher level of uncertainty associated with H2 and H3 necessitates an updated valuation methodology that takes into account more than the net present value (NPV) of the target. We call this the Opportunity Value (OV) of an asset. This is where Opportunity Engineering comes into play.
Harvard Business Review
FEBRUARY 24, 2011
But why compare apples (book value) to oranges (share price and dividends)? Buffett explains that book value is the best proxy for "intrinsic value," the net present value of all estimated future cash flows. Consider that since 1965, Berkshire's book value grew 434,057% and the S&P index grew only 5,430%.
Harvard Business Review
APRIL 9, 2015
If a company earns a $500,000 profit in a calendar year, shouldn’t it have $500,000 more in the bank on December 31 than it did on January 1 of that year? You can use one or more of four ROI calculation methods: payback, net present value , internal rate of return, and profitability index. Excerpted from. Joe Knight.
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