Method of and system for defining and measuring the elements of value and real options of a commercial enterprise
First Claim
1. A method for valuing elements of value and growth options for an enterprise, comprising:
- organizing business data into three components of value, one or more growth options and two or more elements of value at least one of which is intangible;
defining a performance summary of each element of value;
determining the value of each of the elements of value;
determining the discount rate to be used in growth option valuation as a function of the element of value profile of the enterprise and the growth option;
valuing the growth option, and displaying the enterprise business value, the value of each of the two or more elements of value and the value of the one or more growth options.
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Abstract
An automated system (100) and method for defining and measuring elements of value and real options of a commercial enterprise on a specified valuation date. The elements are analyzed using predictive models and vector creation algorithms to determine the value drivers associated with each element. The vector creation algorithms are also used to create vectors that relate element performance to enterprise revenue, expenses and changes in capital. Predictive models are then used to determine the correlation between the value drivers and the enterprise revenue, expenses and changes in capital. The correlation percentages for each value driver are combined with the estimated life of the element and the capitalized value of future revenue, expenses and changes in capital, to calculate a value for each element.
134 Citations
41 Claims
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1. A method for valuing elements of value and growth options for an enterprise, comprising:
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organizing business data into three components of value, one or more growth options and two or more elements of value at least one of which is intangible;
defining a performance summary of each element of value;
determining the value of each of the elements of value;
determining the discount rate to be used in growth option valuation as a function of the element of value profile of the enterprise and the growth option;
valuing the growth option, and displaying the enterprise business value, the value of each of the two or more elements of value and the value of the one or more growth options. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10)
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11. A system for valuing elements of value and growth options for an enterprise, comprising:
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means for organizing business data into three components of value, one or more growth options and two or more elements of value at least one of which is intangible;
means for defining a performance summary of each element of value;
means for determining the value of each of the elements of value;
means for determining the discount rate to be used in growth option valuation as a function of the element of value profile of the enterprise and the growth option;
valuing the growth option, and means for displaying the enterprise business value, the value of each of the two or more elements of value and the value of the one or more growth options. - View Dependent Claims (12, 13, 14, 15, 16, 17, 18, 19, 20)
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21. A method for creating models of element of value impact on a component of value, comprising:
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organizing transaction data into three components of value, one or more growth options and one or more elements of value where each element of value contains one or more items;
deriving item performance indicators for each element of value;
determining the best fit combination of item variables, item performance indicators and predictive model to model element of value impact on a component of value - View Dependent Claims (22, 23, 24, 25, 26, 27, 28, 29, 30)
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31. A system for creating models of element of value impact a component of value, comprising:
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means for organizing transaction data into three components of value, one or more growth options and one or more elements of value where each element of value contains one or more items;
means for deriving item performance indicators for each element of value;
means for determining the best fit combination of item variables, item performance indicators and predictive model to model element of value impact on a component of value - View Dependent Claims (32, 33, 34, 35, 36, 37, 38, 39, 40, 41)
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Specification