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. “You are not going to be involved in running projects unless you understand the financials,” he says. The Refresher: Net Present Value. How can you boost your financial acumen?

Finance 8

Finance Skills EBITDA Net Present Value 8

Harvard Business Review

MARCH 10, 2011

To make sure they're comparing apples to apples, they discount those future cash flows to arrive at their net present value. The motivation behind it, as with many, many articles published over HBR's nearly 90-year history, was to take an effective practice developed in one corner of industry and spread it to managers everywhere.

CAPM 13

CAPM Cost Discounted Cash Flow Cost of Capital 13

Harvard Business Review

DECEMBER 2, 2010

To do this, we combine two separate frameworks: the first is the Three Horizon strategic model developed by McKinsey. The other is a process called Opportunity Engineering (OE) that instills a different way to look at value. We call this the Opportunity Value (OV) of an asset.

NPV 14

NPV Net Present Value Price Engineering 14

Harvard Business Review

NOVEMBER 25, 2013

Moreover, the previous year’s survey showed that 63 percent of projects do not use analytics to inform marketing decisions. In our work with clients across dozens of sectors over more than five years, we have found that the strongest CMO/CFO partnerships develop when both parties undertake five actions: 1.

CFO 8

CFO Short-term Long-term Benchmarking 8

Harvard Business Review

SEPTEMBER 27, 2012

Next, ALL's CEO assembled a cross-functional team to develop simple rules for prioritizing capital spending. To prioritize projects, for instance, the ALL team could have forecast future cash flows for every potential investment and ranked all proposals on the basis of their net present value. reuse existing resources.

Strategy 8

Strategy Proposal Guidelines Net Present Value 8

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

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. In these settings, investors should value strategies that accelerate growth over those that improve margins (see the chart below). Related Video.

ROE 14

ROE Long-term GDP Six Sigma 14

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 50

Innovation NPV Business Model Constraint 50