Harvard Business Review
JUNE 18, 2015
In particular, we are interested in how many of their responses correlate with what academic finance knows and what it teaches. the notion that debt financing can be “cheap” at certain times). Do PE investors do what the academy says are “best practices?” What PE firms do after they invest.
Harvard Business Review
MARCH 10, 2011
When executives evaluate a potential investment, whether it's to build a new plant, enter a new market, or acquire a company, they weigh its cost against the future cash flows they expect will spring from it. To make sure they're comparing apples to apples, they discount those future cash flows to arrive at their net present value.
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Harvard Business Review
JUNE 8, 2018
This notion, that risk is a desirable feature, can seem like sacrilege to anyone who’s taken an introductory finance course. Business students are taught to value a company based on the discounted amounts of future cash flows or earnings. Investors are paying more attention to ideas and options than to earnings.
Harvard Business Review
JANUARY 24, 2014
As Nick Robins from the bank HSBC described to the audience, in a scenario of global peak fossil fuel use by 2020 “implies a 44% reduction in discounted cash flow value of fossil fuel companies” — or in simpler terms, a decline in share price of 40 to 60 percent. Economy Finance Sustainability' coal market.
Strategy Driven
FEBRUARY 21, 2020
With the contribution of cash to the balance sheet of a business through the shareholder value, the post-money value becomes stronger due to the additional cash earned. A pre money valuation is crucial for financing as eventually, it can decide if an entrepreneur has the starry, strong and bad, or sometimes has no way out.
Harvard Business Review
SEPTEMBER 27, 2013
Investors’ core valuation methods ( comparables and discounted cash-flow analysis) both extrapolate past performance into the future — but they fail to predict when the future will be radically different from the past. Disruptive innovation Finance' New-market disruption is more complex.
Harvard Business Review
MARCH 29, 2018
Instead, the finance office can allow the department to keep some of the savings it created, in excess of the original acquisition cost, in future year budgets. This is an imperfect option though since it still does not give a department the incentive to achieve savings in future years.
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