Harvard Business Review

MARCH 6, 2013

You've got to admire the staying power of the Dow Jones Industrials Average. It's a remarkable testament to the power of brand, and of habit. There are three main ways of explaining stock prices: The first is basic economics — a share of stock is worth the present value of the future cash flows associated with it.

Price 8

Price Bond Marketing Present Value 8

Harvard Business Review

JULY 1, 2016

This disclosure alone would serve as a powerful antidote to corporate short-termism. He states that the “fundamental measure of our success will be the shareholder value we create over the long term.” This communication allows all stakeholders, including shareholders, to opt in or opt out given a company’s objectives.

Short-term 10

Short-term Long-term Objective Incentives 10

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. We call this the Opportunity Value (OV) of an asset. This is where Opportunity Engineering comes into play.

NPV 14

NPV Net Present Value Price Engineering 14

Harvard Business Review

NOVEMBER 25, 2013

CFOs are more interested in capital investment estimates, net present values, and a clear outline of the trade-offs of any investment. It’s the CMO’s job to make sure that metrics reflecting the health and value of the customer base –net present value, lifetime value, return on loyalty, cost per acquisition – get on the balance sheet.

CFO 8

CFO Short-term Long-term Benchmarking 8

Harvard Business Review

APRIL 27, 2017

The Refresher: Net Present Value. 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

Harvard Business Review

DECEMBER 11, 2013

This would be a breakthrough communication technology, with the power of connecting an excluded and fragmented continent with itself, with the world, and to this newly emerging phenomenon — that none of us quite understood at the time — called the Internet. Given its economic heft, South Africa was among my first ports of call.

Net Present Value 8

Net Present Value Analysis Politics 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. That’s a more powerful model than something that is purely transactional. Discovery-Driven Growth : A Breakthrough Process to Reduce Risk and Seize Opportunity by Rita McGrath.

Innovation 50

Innovation NPV Business Model Constraint 50