Difference between revisions of "Value driver"
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Latest revision as of 14:45, 27 October 2019
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).
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
