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. Schulze, and Michael H. McNulty et al. knew that firms were making heavy use of the capital asset pricing model (CAPM) to size up growth opportunities, but that the model was only as good as its inputs.

CAPM 13

CAPM Cost Discounted Cash Flow Cost of Capital 13

Harvard Business Review

NOVEMBER 25, 2013

Only when they began to really analyze their marketing costs did the company realize that it was spending three times the industry benchmark on coupons and 50 percent more on research. CFOs are more interested in capital investment estimates, net present values, and a clear outline of the trade-offs of any investment.

CFO 8

CFO Short-term Long-term Benchmarking 8

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 Refresher: Net Present Value. If you’re not a numbers person, finance is daunting. How can you boost your financial acumen? And who’s in the best position to offer advice?

Finance 8

Finance Skills EBITDA Net Present Value 8

Harvard Business Review

OCTOBER 15, 2012

However, we learned the difficult lesson that unless we could clearly articulate the maturity level and value proposition for a new technology within the context of our partners' other choices, there was little or no value in the technology — regardless of how much money we had invested in it. Net Present Value ).

Innovation 8

Innovation Execution Net Present Value Open-book 8

Harvard Business Review

JUNE 18, 2015

The private equity industry has grown markedly in the last 20 years and we know more than we used to about its effects on the economy. In operational engineering, PE firms develop industry and operating expertise that they bring to bear to add value to their portfolio companies.

CAPM 8

CAPM Discounted Cash Flow Company Rate of Return 8

Harvard Business Review

AUGUST 21, 2015

“You have to look at it in context of the industry and its competitive structure and in the context of consumers’ lives.” Once you do that, you can adjust price up or down to better represent the level of value you are providing to your customers. “You can’t look at it in isolation,” says Avery.

Price 8

Price Debt to Equity Ratio Marketing Net Present Value 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 fact, the multiple of value created by growth versus margins is more than four to one. Related Video.

ROE 12

ROE Long-term GDP Six Sigma 12

Harvard Business Review

DECEMBER 11, 2013

These were engineers and network planners; surely, they understood economics and net present value analysis. The context in these countries is complex and different from what we are familiar with in the industrialized west. Still frustrated, I walked the corridors of South Africa Telkom and ran into the old guard.

Net Present Value 8

Net Present Value Politics Analysis Telecommunications 8

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. Two, don’t assume that your firm or even your industry has the answers. A great place to look for new models is in adjacent industries or even entirely different industries.

Innovation 50

Innovation NPV Business Model Constraint 50