Part II – Value Driver Theory and Investing in Value

Part II discusses the process of investing in enterprise value for both public and private companies.

The creation of value in business enterprises is, and should be, the focus of every entrepreneur and business manager. Investors should be similarly concerned with the value that is being created in the enterprises in which they invest. This section discusses value creation, using the concepts developed in value driver theory.

A more complete and extensive discussion of enterprise value creation and investing in enterprise value can be found in the book (to access, click link), Think Strategically, Think Value: The Complete Handbook for Creating, Sustaining, Analyzing, and Investing in Enterprise Value, written by Dr. Paul M. Wendee. The research study that created Value Driver Theory can be found in the book (to access, click link), A Theory of Value Drivers: A Grounded Theory Study, written by Dr. Paul M. Wendee.

Part II begins with the article, Steps to Investing in Enterprise Value. This article is a general discussion of investing in enterprise value. The more detailed articles on investing using the Cassandra Stock Selection Model are found in Parts III and IV of this book. You can access the article, Steps to Investing in Enterprise Value, by clicking the link below.

Steps to Investing in Enterprise Value

The Value Creation Process Chart shows graphically how value is created. The accompanying description of the chart discusses each of the elements in the chart, their relationship to one another, and further defines how value  is created.

Value Creation Process Chart

Value Creation Process Chart Description

The Value Drivers Possibilities Frontier is an exact description of the value creation process, whereas the Value Creation Process Chart discussed above is a summary of the process. The Value drivers Possibilities Frontier is discussed at length in the paper, A Theory of Value Drivers: A Grounded Theory Study, which can be found in Part I of this workbook.

Value Drivers Possibilities Frontier

The Intrinsic Value Line (TM) is a new concept introduced by value driver theory. The following article discusses the concepts of intrinsic value, the Intrinsic Value Line (TM), and Intrinsic Value Added (TM).

Intrinsic Value and the Intrinsic Value Line


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