Harvard Business Review

DECEMBER 2, 2010

The higher level of uncertainty associated with H2 and H3 necessitates an updated valuation methodology that takes into account more than the net present value (NPV) of the target. The two together, NPV + OV, provide an inclusive but not inflated valuation. We call this the Opportunity Value (OV) of an asset.

NPV 14

NPV Net Present Value Price Engineering 14

Harvard Business Review

SEPTEMBER 21, 2015

“Our business model puts the power back in your hands: It restores your direct relationship with customers and allows you to market your properties as unique destinations—not commodities—again. ” Negative NPV. “You can see that if you go three years out, the NPV is still negative on our investment.

Case Study 8

Case Study Travel Hotels NPV 8

Harvard Business Review

APRIL 27, 2017

Next time you're deciding about a big investment, NPV can help you make a more informed decision. An activist hedge fund, for example, can exert massive pressure to change the strategy and/or investment approach of the company based on its ownership of a sufficient share of the company’s equity. Related Video.

Hedge 9

Hedge Short-term Long-term NPV 9

Strategy Driven

SEPTEMBER 9, 2011

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. One problem is that NPV calculations tend to compare today with some future state.

Innovation 50

Innovation NPV Business Model Constraint 50