Formula
Terminal Value End of Period
-
Gross Cash Investments Begin of Period
+ Gross
Cash Flows in the In-between Period
---------------------------------------------------------
Total Business Return (TBR) |
Short Description Total Business Return
Total Business Return is a
forward-looking measure of CFROI.
TBR was designed to emulate the way capital markets determine
TSR.
In this way one is able
to 'use' Total Business Return also for an internal business unit, division, project or
strategy.
Total Business Return is very similar to what EVA users
call forward looking IRR.
TBR can be calculated at
divisional (Strategic Business Unit) level and below and Total Business Return can even be
observed for privately held companies.
More valuation methodologies
|
Category
Financial Value
Market-Based
Expressed as a percentage
Economic Profit (indirect)
|
