Evaluating TSR Drivers: Value, Multiples, and Cash Flow PPT

This PPT slide, part of the 101-slide Complete Guide to Value Creation PowerPoint presentation, presents the TSR Decomposition Model, which evaluates 3 key drivers: Fundamental Value, Valuation Multiple, and Free Cash Flow Yield. Each driver is broken down into specific components that contribute to overall performance metrics.

Starting with Fundamental Value, it emphasizes the importance of sales growth and margin change in calculating EBITDA growth. The slide notes a sales growth of 4.2% and a margin change of -0.6%, leading to an EBITDA growth of 3.6%. This section suggests that understanding these metrics is crucial for assessing an organization’s fundamental health. The mention of reinvestment and taxes indicates that these factors also play a role in determining free cash flow, which is vital for sustaining operations and funding growth.

Next, the Valuation Multiple section highlights the EBITDA multiple change of 2.8%. This ratio, which compares enterprise value to EBITDA, serves as an indicator of market expectations regarding the organization’s future performance. It’s a critical measure for investors looking to gauge how the market values the company relative to its earnings potential.

Finally, the Free Cash Flow Yield segment tracks the distribution of fresh cash flow to investors. It includes dividend yield at 2.9%, share change at 2.4%, and a net debt change of -2.1%, culminating in a free cash flow yield of 3.2%. This part underscores the importance of cash flow management in delivering returns to shareholders and maintaining financial flexibility.

Overall, the slide effectively outlines how these components interact to provide a comprehensive view of value creation, making it a valuable tool for executives focused on enhancing financial performance.

This slide is part of the Complete Guide to Value Creation PowerPoint presentation.

This presentation is created by former McKinsey, BCG, Deloitte, EY, and Capgemini consultants. It covers multiple Value Creation frameworks utilized by global strategy consulting firms.

Download the Full Presentation

EXPLORE MORE SLIDES FROM THIS PRESENTATION

EXPLORE MORE PRESENTATIONS ON

Shareholder Value Cash Flow Management Value Creation Dividend Yield Sales

Are you familiar with Flevy? We are you shortcut to immediate value.

Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations

Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.

Flevy is the world's largest knowledge base of best practices.

Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.

Read Customer Testimonials

"As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."

– David Coloma, Consulting Area Manager at Cynertia Consulting

"Flevy is our 'go to' resource for management material, at an affordable cost. The Flevy library is comprehensive and the content deep, and typically provides a great foundation for us to further develop and tailor our own service offer."

– Chris McCann, Founder at Resilient.World

"I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact

... [read more]

– Roberto Pelliccia, Senior Executive in International Hospitality

"FlevyPro provides business frameworks from many of the global giants in management consulting that allow you to provide best in class solutions for your clients."

– David Harris, Managing Director at Futures Strategy

"Last Sunday morning, I was diligently working on an important presentation for a client and found myself in need of additional content and suitable templates for various types of graphics. Flevy.com proved to be a treasure trove for both content and design at a reasonable price, considering the time I

... [read more]

– M. E., Chief Commercial Officer, International Logistics Service Provider

"If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"

– Debbi Saffo, President at The NiKhar Group

"I like your product. I'm frequently designing PowerPoint presentations for my company and your product has given me so many great ideas on the use of charts, layouts, tools, and frameworks. I really think the templates are a valuable asset to the job."

– Roberto Fuentes Martinez, Senior Executive Director at Technology Transformation Advisory

"As a consultant requiring up to date and professional material that will be of value and use to my clients, I find Flevy a very reliable resource.

The variety and quality of material available through Flevy offers a very useful and commanding source for information. Using Flevy saves me time, enhances my expertise and ends up being a good decision."

– Dennis Gershowitz, Principal at DG Associates