Value Based Management
Traditional accounting measures for evaluating a company’s performance, such as earnings per share and return on assets, are increasingly being cast aside in favor of measures which reflect the underlying economics of the business and include such factors as risk and time value of money. Such a measure is Economic Profit or, in other words, shareholder value.


Managing the business to maximize the delivery of value to shareholders should be central to every company’s strategy.

Value based management is an integrated approach to managing a business, with the primary goal being maximizing shareholder value. Integral to the process is the identification and optimization of the company’s key drivers of performance, also known as value drivers. Value based techniques are increasingly being used by major companies in managing their operations, as well as by the investment community in evaluating performance.

At KPMG in Bahrain we have our own well-established methodology and the experience to help you transform your culture and decision making process to be truly value oriented.

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