Harvard Business Review

JUNE 8, 2018

Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select. Some of these ideas contradict traditional financial thinking whereas others seem highly controversial or pessimistic.

Report 8

Report GAAP Net Present Value CFO 8

Harvard Business Review

JULY 9, 2012

I was just in Las Vegas spending time at the Downtown Project backed by Zappos CEO Tony Hsieh (who self-professes that Luck serves as a core factor in his success). But to convert a Lucky Attitude into success, you also need to build what we call a Lucky Network.

Net Present Value 17

Net Present Value Entrepreneur Strategic Fit Open-book 17

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%.

Letter 15

Letter P&L Net Present Value Insurance 15

Harvard Business Review

DECEMBER 1, 2011

This blog post is part of the HBR Online Forum The CEO's Role in Fixing the System. The short-term investor does not reduce the firm's long-term competitiveness and value;short-term management does. A firm's long-term value should correspond to the present value of future expected cash flows.

Short-term 15

Short-term Hostile Takeover Long-term Management 15

Harvard Business Review

MARCH 23, 2015

Do you think they’re going to do a net present value (NPV) analysis that shows they don’t need that computer? The CEO negotiates with a company he or she wants to acquire. Not long after, the board fired the CEO. Joe Knight. Add to Cart. Of course not. billion with incentives several years ago.

Finance 8

Finance NPV CFO ROI 8

Harvard Business Review

NOVEMBER 9, 2012

The operational executives, for their part, when confronted by a subject that typically neither they nor their teams completely grasp, all too often come up with little more than a contingency plan and then sit back and hope nothing goes wrong — meanwhile, excessive risk costs continue to reduce the company's present value.

Supply Chain 9

Supply Chain Chief Procurement Officer Risk Management Management 9

Harvard Business Review

SEPTEMBER 27, 2012

Next, ALL's CEO assembled a cross-functional team to develop simple rules for prioritizing capital spending. The cross-functional team that created ALL's rules included the head of each department as well as the CEO. reuse existing resources.

Strategy 8

Strategy Proposal Guidelines Net Present Value 8

Harvard Business Review

NOVEMBER 19, 2015

This can be quantified by analyzing the extent to which the share prices of S&P 500 firms are driven by a firm’s present value of future growth options (PVGO) rather than cash flow from current operations. Peter Hancock, CEO of AIG, told us: “I always hear, ‘You’re giving me mixed messages.’

Company 8

Company Succession Maturity Long-term 8

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 8

CAPM Discounted Cash Flow Company Rate of Return 8

Harvard Business Review

MAY 1, 2017

In these circumstances, strategies that generate faster growth create more value for most companies than those that improve profit margins. The Refresher: Net Present Value. Related Video. Next time you're deciding about a big investment, NPV can help you make a more informed decision.

ROE 15

ROE Long-term GDP Six Sigma 15

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. Some current clients include F-Secure, Nokia, Microsoft, (and its CEO Summit), AXA Equitable, General Electric, Novartis, PPG Industries, the Stena Group and the World Economic Forum.

Innovation 50

Innovation NPV Business Model Constraint 50