Business Blog

Growth, Profitability, and the Stock Price

Growth, Profitability, and the Stock Price

Ever wonder what the relationship is among growth, profitability, and stock price (or market cap)? Below, I try to calculate the relationship from first principles.

Let the games begin!

Let the games begin!

As budget season approaches the Company must decide which of its strategic concepts will be crystallized into real strategies by allocating to them our scarce resources.  While the goal is to maximize shareholder value, the need for crisp decisions inevitably leads to...