Value Based Metrics

Investors, shareholders, and corporate leaders looking for an edge in today's New Economy are moving beyond traditional accounting yardsticks toward new means of gauging performance and profitability. An increasing number of Wall Street analysts and corporate boards are adopting value-based metrics such as EVA, MVA, and CFROI as a measure of a firm's profitability because these standards adjust for all of the firm's cost of capital - equity as well as debt. James Grant tackled the issue of economic value added in its infancy with Foundations of Economic Value Added - one of the first primers on the topic, endorsed by its creator, G. Bennett Stewart. Now, in Value Based Metrics: Foundations and Practice, he and Frank Fabozzi head a team of some of the leading proponents of value based metrics on both the investment management side and the corporate side. This comprehensive reference outlines how corporations and analysts can use value based metrics to more accurately measure the financial performance of individual companies, industries, and economies, as well as how to get an edge in today's turbulent market.

Featuring a road map that can be applied in almost any organization, this book presents a unique value based methodology for developing and using metrics as a management tool to baseline, monitor, manage, and reward performance of business functions at all levels.

Annette Holler introduces two new depreciation-adjusted value metrics. Furthermore, a case study illustrates the depreciation-related bias. A regression analysis adds to previous evidence on associations of value creation with stock returns and firm values.

"Product-Led Growth is about helping your customers experience the ongoing value your product provides. It is a critical step in successful product design and this book shows you how it's done." - Nir Eyal, Wall Street Journal Bestselling Author of "Hooked"

As the first decade of the 21st century winds down we have seen a sea change in society's attitudes toward finance. The 1990s can best be described as the decade of shareholder supremacy, with each firm trying to outdo the other in their allegiance to shareholder value creation, or as it came to be known, Value-Based Management (VBM). No one seemed to question this culture as the rising firm valuations translated into vast wealth creation for so many. Three significant economic events have reshaped how the public feels about an unbridled devotion to VBM and have defined the last decade: the dot.com bubble in 2000, the infamous accounting scandals of 2001, and the collapse of the credit markets in 2007-2008. In all three of these events the CEOs were portrayed as reckless and greedy and Wall Street went from an object of admiration to an object of scorn. The first edition of this book, Value Based Management: The Corporate Response to the Shareholder Revolution was written to help explain the underpinnings of Value-Based Management. At the time of its publication, few questioned whether the concept was the proper thing to do. Instead, the debate was focused on how to implement a VBM program. With this new second edition, the authors look at VBM after having seen it through good times and bad. It is not their intent to play the blame game or point fingers. Nor is it their intent to provide an impassioned defense of VBM. Instead they provide an academic appraisal of VBM, where is has been, where it is now, and where they see it going.

The choice of financial performance measures is one of the most critical challenges facing organizations. The accounting-based measures of financial performance have been viewed as inadequate, as firms began focusing on shareholder value as the primary long-term objective of the organization. Hence, value-based metrics were devised that explicitly incorporate the cost of capital into performance calculations. Despite the increasing emphasis on these value-based measures, no definitive evidence exists of which metric works better than others, and on the extent to which any of them is superior to traditional accounting measures. In this scenario, the objective of this book is contributing to the ongoing dialogue on the appropriateness of different financial performance measures, by providing a systematic and updated review of the major value-based measures, by highlighting their respective strengths and weaknesses and by comparing the main international empirical evidence on their effectiveness. This book can be a powerful tool for guiding managers and graduate students in the “tangled forest” of the existing metrics, by providing them with the quick, but adequate knowledge for consistently adopting them.

Applied Equity Valuation provides comprehensive coverage of the theory and practice of all aspects of valuation, including security valuation in a complex market, bottom-up approach to small capitalization active management, top down/thematic equity management, implementing an integrated quantitative investment process, applying the DDM, value-based equity strategies, market-neutral portfolio management, enhanced indexing, dynamic style allocation, and exploiting global equity pricing anomalies.

Project Management Metrics, KPIs,and Dashboards Enables readers to easily understand and implement essential strategies on measuring project management performance Project Management Metrics, KPIs, and Dashboards provides complete coverage of what metrics and KPIs are and how to use them effectively, offering comprehensive coverage of the different dashboard types, design issues, and applications that readers may come across during practical application of the concepts. To aid in seamless reader comprehension, the work includes full-color dashboards from some of the most successful project management companies. As a modern resource, the work aligns with PMI’s PMBOK® Guide and stresses value-driven project management. Written by the leading authority in the field, sample topics covered in the work are as follows: Stakeholder relations management, effective metric measurements, selecting the right project metrics, innovation metrics, and how to become and stay agile Comparing traditional and nontraditional projects, defining complexity, decision making, fluid methodologies, global project management, and project management methodologies/frameworks Customer relations management, a new look at defining project success, and why customer satisfaction must always be considered Scope creep, scope creep dependencies, causes of scope creep, the business side of scope creep, and ways to minimize scope creep For project managers across all industries, Project Management Metrics, KPIs, and Dashboards is a valuable resource on the subject that will bolster your awareness of what good metrics management really entails and arm you with the important knowledge needed to measure and communicate performance more effectively.