Value Creation Index - Explained
What is the Value Creation Index?
Written by J. Mance Gordon
Updated at April 21st, 2024
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What is the Value Creation Index?
The Value Creation Index, created by Cap Gemini, Ernst & Young, demonstrates the relationship between a company’s market valuation and the company’s non-financial performance (such as innovation, people, ideas, and brand).
Non-financial factors for creating value are difficult to quantify and are not accounted for in generally accepted accounting practices. Thus, these metrics go unreported.
Categories of Intangible Value Drivers
Categories of intangible performance that determine corporate value creation
- Innovation.
- Customer relations.
- Management capabilities.
- Alliances.
- Technology.
- Brand value.
- Employee relations.
- Environmental and community issues.
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