Topic
Embedded value
About: Embedded value is a research topic. Over the lifetime, 343 publications have been published within this topic receiving 8853 citations.
Papers published on a yearly basis
Papers
TL;DR: In this article, the two most basic approaches, economic value added (EVA) and discounted cash flow (DCF) techniques, are used to measure value creation of companies, which are consistent with the maximization of the value of the company.
Abstract: There are some major frameworks within value based management system. This paper analyses the two most basic approaches – economic value added (EVA) and discounted cash flows (DCF) techniques – that are used to measure value creation of companies. These models are frequently applied in company’s valuation and investment project valuation. EVA and NPV measures are consistent with the maximization of the value of the company. Investments, cash flows, economic life and capital cost are financial market’s actuality, where value and profitability should be measured. Therefore DCF models are applied there and companies’ economic data can be obtained from here. Each investment is evaluated of future decisions over its useful life based on the expected cash flows. The result is net present value (NPV) and a positive NPV show that investment creates value. EVA is calculated over a defined calendar period. It measures an entire company’s current economic performance. A positive EVA signals value creation. The concept of NOPAT is basic to both approaches. Each approach requires a variety of adjustments to the accounting information. Although DCF and EVA approaches can provide the same present value expression, there are differences between these approaches. Some of them are technical and therefore NPV analysis is the business analysts’ preferred method to estimate value and to make long-term decisions.
28 citations
Book•
30 Dec 1999
TL;DR: The Story behind Value added reporting Adapting and Using Value added Information Adapting, using and using value added information Usefulness of Value added Reporting Net Value Added and Earnings Determination The Substitution of Net Value-added for Earnings in Equity Valuation The Effects of Accounting Knowledge on the Omission of Value Added in Wealth Measurement and Distribution Index as discussed by the authors.
Abstract: Preface The Story behind Value Added Reporting Adapting and Using Value Added Information Usefulness of Value Added Reporting Net Value Added and Earnings Determination The Substitution of Net Value-Added for Earnings in Equity Valuation The Effects of Accounting Knowledge on the Omission of Value Added in Wealth Measurement and Distribution Index
28 citations
TL;DR: In this article, one of the most important criteria, i.e. Shareholder Value Added (SVA), is investigated from several viewpoints, including the changes in the value and alongside maximizing the long-term shareholders returns.
27 citations
Patent•
11 Jun 2009TL;DR: In this article, the authors propose a method and mechanism that protect a person with a property interest in a piece of real property against a loss of expected future market value of the real property.
Abstract: A method and mechanism that protect a person with a property interest in a piece of real property against a loss of expected future market value of the real property. A policyholder may first select an expected future market value for the real property and a time period in which the expected future market value is to be attained (e.g., 10 years). An insurer may model relevant conditions, factors and events that effect property values over time for a particular geographic region. A premium may be determined based on the selected expected future market value and the determination of expected future market value made by the insurer. Upon a conveyance of the real property at the time period or window specified, a loss may be determined if the fair market value of the real property is less than the selected expected future market value.
27 citations
TL;DR: It is shown that SCM is realized in a value-adding way with different emphasis on COGS or working capital, which is more appropriate for value creation than alternating improvements and deteriorations.
Abstract: The research question addressed is to which extent supply chain management (SCM) creates value from cost and working capital. The paper provides an empirical evaluation including insights on important criteria for value creation. In a secondary data analysis, 10 leading fast moving consumer goods (FMCG) companies are benchmarked regarding the value created from cost of goods sold (COGS) and working capital within the time horizon 2003–2008. The study applies benchmarking methodology and a discounted cash flow (DCF) based model for quantifying value contributions. It is shown that SCM is realized in a value-adding way with different emphasis on COGS or working capital. Monetarily working capital components (trade payables, trade receivables) have a high relevance for value creation. Continuous improvements and long lasting developments of value drivers are more appropriate for value creation than alternating improvements and deteriorations. Timing aspects of value driver developments have to be considered for value creation. The value of the paper stems from empirical comparison of value created by working capital and COGS and from evidence of important criteria for value creation. Further analysis based on cost components as well as benchmarking with different or extended content, such as fixed asset performance or cross-industry benchmarking, leave room for future research.
26 citations
Related Topics (5)
Performance Metrics
| Year | Papers |
|---|---|
| 2021 | 3 |
| 2020 | 2 |
| 2019 | 2 |
| 2018 | 3 |
| 2017 | 14 |
| 2016 | 20 |