Harvard Business Review

JUNE 18, 2015

” PE firms typically take three types of value increasing actions — financial engineering, governance engineering, and operational engineering. In financial engineering, PE investors provide strong equity incentives to the management teams of their portfolio companies.

CAPM 8

CAPM Discounted Cash Flow Company Rate of Return 8

Harvard Business Review

OCTOBER 20, 2014

In the 1990s, Procter & Gamble’s Product Supply Organization kicked off a major Reliability Engineering program, much like the efficiency initiatives of companies such as Toyota. Combining these creates a P&L and a projection, which through a discounted cash flow analysis yields an NPV, which can be used to assess valuation.

Discounted Cash Flow 8

Discounted Cash Flow P&L NPV EBITDA 8

Harvard Business Review

JUNE 8, 2018

However, many investors seem to have concluded that the most successful companies with tens of billions of dollars of valuation today could never have justified their valuation at the start of their operation based on discounted cash flow. Investors are paying more attention to ideas and options than to earnings.

Report 8

Report GAAP Net Present Value CFO 8