Value Based Metrics: Foundations And Practice

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.

Frank J. Fabozzi is a financial consultant, the editor of the Journal of Portfolio Management, and an Adjunct Professor of Finance at Yale University's School of Management.
James L. Grant is President of JLG Research, a company specializing in economic profit research and customized seminars in investment management. Dr. Grant holds a Ph.D. in Business from the University of Chicago's Graduate School of Business, and has been a featured speaker at industry conferences on value-based metrics.

Preface.

About the Editors.

Contributing Authors.

1. Value-Based Metrics: Motivation and Practice (F. Fabozzi and J. Grant).

2. Value-Based Metrics in Financial Theory (F. Fabozzi and J. Grant).

3. Closing the GAAP Between Earnings and EVA (A. Ehrbar).

4. Value-Based Measures of Performance (P. Peterson).

5. Does Value-Based Management Discourage Investment in Intangibles? (S. O'Bryne).

6. Integrating EVA? into the Portfolio Management Process (J. Wolin and S. Klopukh).

7. Economic Margin: The Link Between EVA and CFROI (D. Obrycki and R. Resendes).

8. Value-Based Management and Economic Value Added: A Global Perspective (S. Young).

9. EVA and the OECD Principles of Corporate Governance (R. Shaw, et al.).

10. The Implementation of Value-Based Metrics and the Next Steps in Corporate Valuation (R. Gupta and C. MacDonald).

11. Allocating Risk Capital in Banking (R. Kimball).

12. Internal Use of Value-Based Metrics (B. Lorge).

Index.