CFROI Valuation- Bartley J. Madden
Bartley J. Madden - CFROI Valuation
A Total System Approach to Valuing the Firm
Bartley Madden is a partner at HOLT Value Associates LP, an international Value Based Management consulting firm.
model applies dividend discount technique to
inflation-adjusted cash flow growth projections, using a firm-specific risk
premium plus the market-required rate of return to determine the firms
warranted value and the equity's warranted price. CFROI valuation
resolves two fundamental equity valuation issues: the recognized fallibility
of the Capital Asset Pricing Model and the inherent inconstancy of
accounting data. The former supplying a counter-intuitive cost of capital or
required rate of return; the other concealing the real prospects of the
firm's wealth creating efforts. As the lengthy flow charts detailing the
process required to turn accounting hash into economic reality attest,
CFROI valuation is not a black box of unexplained miracles. It's a
sweatshop equipped with empirically-proven, high tech tools which give the
driven amateur and dedicated professional the means to outrun the herd.
The purpose of this comprehensive book is, according to the back flap, threefold:
1. to explain in detail HOLT's CFROI valuation model,
2. to show the CFROI model's unique benefits, and
3. to encourage more productive thinking about issues involving the management of business firms and shareholder value.
Madden succeeded in achieving all three of these objectives, thus creating the ultimate book on CFROI valuation available on the market today.
Highly recommended if you want to dive deep into CFROI valuation details and benefits.
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