Measuring Business Performance using Value-Based metrics and Indices

The importance of value

measure understand act

Measuring the value dynamic within a business delivers the clearest indicator of wealth generation/destruction. Many businesses quietly destroy capital (and thus value). It is a process that usually goes unnoticed by the business owners and shareholders. Why? Investment professionals frequently focus on the performance of the organisation using earnings-based metrics, not by a total economic perspective. Unfortunately, an earnings-driven perspective does not account for the cost of capital. Think Enron and its fixation on Earnings Per Share growth whilst the company's underlying economic and capital position was being simultaneously eroded. Our role is to assist companies in measuring and understanding their underlying business performance by tracking the rate of value creation/destruction. This is also known as Economic Performance. Additionally, we provide strategic solutions for businesses that wish to make the transition towards value creation. After all, as the late Roberto Goizueta (former CEO of The Coca-Cola Company) said, ‘When you start charging people for their cost of capital, all sorts of good things happen’.

  • Our 3-step approach
  • 1. A Financial and Economic Analysis

    We undertake a thorough economic analysis of the business (and peers) to determine the true wealth/value dynamic at a company and market-level.

  • 2. Assessment of business performance

    We identify the areas of the business that are creating value and those which are destroying value. We determine the reasons for good and not so good economic performance eg assessing the cost of revenue against the economic return, identifying the effect of disposals and acquisitions on the value creation dynamic and measuring the economic efficiency of the business using our proprietary indexing capabilities.

  • 3. Deploying a value-based strategic approach

    We assist and advise in the re-shaping of corporate strategy to focus on value-creation and the generation of shareholder wealth.

Scope of Analysis

It takes a forensic approach to measure and benchmark value performance. We also take into account the wider contextual factors which can influence performance outcome.
Financial Performance
Financial Performance
Creating or destroying value?
To see if the market or entity in question is really doing everything it should to create value. How efficient is the entity in question? What is/are the index values and why?
Market data
Market data
Dynamics and trends
Expanding or shrinking markets? Is the analytical cohort behaving in a similar manner or are there exceptions and why? Do index values reflect decline, stagnation or growth?
Economic factors
Economic factors
Global and regional influences
What are the impacts if the market is highly regulated? Are there any economic factors that will influence future performance?
Development and direction
Sector start-ups, disruptive threats, social uptake, market shifts, development trends. What are the likely outcomes in economic performance with shifts in technology?


Getting 'under the hood' is vital in understanding the value dynamic. Click on an image to see it in context.

vysyble has gained extensive international media coverage by highlighting the underlying value dynamics and economic performance of high-profile sectors such as English Premier League football, the UK energy supply market and the UK supermarket sector.

Getting a measure of true business performance starts here...

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