Financial metrics are essential tools for measuring and tracking value maximization. Some key metrics include:
Return on Investment (ROI): This measures the profitability of investments and indicates how well a company is using its resources. Earnings Per Share (EPS): EPS indicates the company's profitability on a per-share basis, which is crucial for investors. Net Present Value (NPV): NPV calculates the value of future cash flows, helping businesses assess the profitability of long-term projects. Economic Value Added (EVA): EVA measures the value created above the required return of the company's shareholders.