Harvard Business Review

MARCH 31, 2017

But having a grasp of terms like EBITDA and net present value are important no matter where you sit on the org chart. “The decision-makers will want to see a simple model that shows revenue, costs, overhead, and cash flow,” he says. The Refresher: Net Present Value. What if costs go down or up?

Finance 8

Finance Skills EBITDA Net Present Value 8

Harvard Business Review

AUGUST 3, 2018

The second item in a firms’ financial disclosures should be a detailed statement of outlays, presented in three broad categories. While the marginal costs for generating an additional dollar of revenues could be zero, a digital firm must spend large amounts to enhance its offerings and keep pace with competition.

Report 8

Report GAAP Company Proposal 8

Harvard Business Review

DECEMBER 1, 2011

This by itself is not a surprise; after all, the costs and effort associated with trading stocks have gone down dramatically. Not surprisingly, some investors would seek to benefit from the combination of lower transaction costs and opportunity to make money from the fluctuations in prices.

Short-term 14

Short-term Hostile Takeover Long-term Management 14

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 14

Letter P&L Net Present Value Insurance 14

Harvard Business Review

JUNE 18, 2015

In operational engineering, PE firms develop industry and operating expertise that they bring to bear to add value to their portfolio companies. Furthermore, few PE investors explicitly use the capital asset price model (CAPM) to determine a cost of capital. Not all PE firms use the same strategy.

CAPM 8

CAPM Discounted Cash Flow Company Rate of Return 8

Harvard Business Review

OCTOBER 15, 2012

Companies knew how to engage a design firm, license IP, and form joint ventures, but few knew how to truly co-develop innovations with external partners, such as PARC. Know the risks and the costs. It's hard to value an idea without understanding just how much time and money it will take to implement it. Net Present Value ).

Innovation 8

Innovation Execution Net Present Value Open-book 8

Harvard Business Review

MAY 29, 2017

And finally, writing a values statement is used as the start of an ongoing, transformational journey, not the conclusion of one. When these three conditions aren’t present, values can get hijacked and misused. Without accountability, values become a weapon to punish. Here’s how it happens: 1.

Bottom-up 8

Bottom-up Competitive Advantage Organization Workshop 8

Harvard Business Review

SEPTEMBER 27, 2012

To set a clear direction, the senior managers decided on four companywide priorities: cut costs, expand services to existing customers to grow revenues, invest selectively to improve infrastructure, and build an aggressive corporate culture. Aligning activities with corporate objectives. reuse existing resources. reuse existing resources.

Strategy 8

Strategy Proposal Guidelines Net Present Value 8

Harvard Business Review

FEBRUARY 7, 2011

Anyone who has had to make the argument for an investment knows the basic tool involved: a Net Present Value (NPV) calculation. The overall value of a foreign investment is equal to the NPV of the expected stream of profits for the life of the investment.

NPV 12

NPV Short-term Discount Politics 12

Harvard Business Review

APRIL 2, 2014

Campbell’s work has also made liberal use of the analytic tools developed by Hansen. You know, the future value of money, the present value of money — money today is worth more than in the future because you can invest it and get interest. You’re going to have to take a worst reasonable case.

CAPM 8

CAPM Discount Price Finance 8