Career, Cost of Capital and Present Value

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Career

Cost of Capital

Present Value

Is Your Business Biased Against Innovation?

Strategy Driven

SEPTEMBER 9, 2011

Many conventional metrics we use to estimate value are based on faulty assumptions. Net present value [NPV] is a case in point. 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.

Innovation

Innovation NPV Business Model Constraint

What Private Equity Investors Think They Do for the Companies They Buy

Harvard Business Review

JUNE 18, 2015

For instance, despite the prominent role that discounted cash flow valuation methods play in academic finance courses, few PE investors use discounted cash flow or net present value techniques to evaluate investments. Rather, they rely on internal rates of return and multiples of invested capital.

CAPM

CAPM Discounted Cash Flow Company Rate of Return

Leadership Digital

Is Your Business Biased Against Innovation?

What Private Equity Investors Think They Do for the Companies They Buy

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