Measuring Project Performance with Value-Based Methods Cover Image

Projekto veiklos efektyvumo matavimas vertės metodais
Measuring Project Performance with Value-Based Methods

Author(s): Tomas Petravičius
Subject(s): Economy
Published by: Vilnius Gediminas Technical University
Keywords: Project; value-based management; Economic profit (EP); economic value added (EVA); marked value added (MVA); cash flow return on investment (CFROI); cash value added (CVA); shareholder value added (SVA); residual income (RI).

Summary/Abstract: The value of the company is the benefit of positive net present value projects which give better return than the cost of invested capital. It is important for investors and shareholders to choose the optimal collection of strategic decisions and evaluate the performance of project realization, to measure yearly actions of managers to create shareholder value. value-based methods are used to measure the performance of projects with the objective to create the value of company. After grouping of valuation methods depending on cash flow, balance and market value, their useful adjustment to controlling performance for specific needs of investors in performed. In the paper the approach to project yearly performance management is discussed to control the value of enterprise, with benefits and limitations formulated in conclusions.

  • Issue Year: 2008
  • Issue No: 4
  • Page Range: 295-305
  • Page Count: 11
  • Language: Lithuanian