文档介绍：Value(s)-Based
Management
in the New Economy
Performance Management 2000
April 25, 2000
John Simke (416) 365-8869
john.******@ PwC
Agenda
• Value-based management
• How the new economy has
transformed value creation
• The implications for
established businesses
• The value creation model for
the future
• e-world values for superior
performance
• Implementing the new value
system
2 PricewaterhouseCoopers
Value-Based Management
• Drivers of shareholder value
– Sales growth
– EBITDA Margin
– Cash tax rate Free cash flow
– Working capital
– Capital expenditure
– Weighted average cost of capital
– Competitive advantage period
3 PricewaterhouseCoopers
Value-Based Management
• These variables drive economic profit ie. profit after capital
replacement, or essentially “free cash flow”
• Discounted to present value determines shareholder value:
Future free cash flows
Corporate value =
Discounted at WACC
• The seven value drivers are drilled down to specific
performance metrics that are managed on an ongoing basis
4 PricewaterhouseCoopers
Cash Flow is More Reliable than Earnings
EPS does not correlate Cash Flow is a more
well with value reliable indicator
50 50 10 10
5 5
30