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Value Driver Tree Financials

About a century ago, Du Pont created a metric concept called the value driver tree, which splits value-based metrics such as EVA and ROI into their sub-metrics.  The value driver tree for financial institutions is based on the assumption that financing is part of operations.

 

Click here for the Non-Financials Value Driver Tree.
Click here for Value Driver Tree metric definitions. 

Click here for the final VBM section on value-based incentive compensation.

Recommended Readings: EVA by Stephen F. O'Byrne, Competitive Value Management by Hermann J. Stern

Value Driver Tree Financials

value driver tree for financials (banks, insurances) compiled using the equity method (invested capital equals equity, disregarding debt)