Value driver

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Value driver is one of four value drivers that are the growth rate in sales (g), operating profitability (OP = NOPAT/Sales), capital requirements (CR = Capital/ Sales), and the weighted average cost of capital (WACC).


Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Value drivers. The four value drivers are the growth rate in sales (g), operating profitability (OP = NOPAT/Sales), capital requirements (CR = Capital/ Sales), and the weighted average cost of capital (WACC).

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