Value drivers

The term value drivers (or value generators , Eng. Value driver ) comes from the discussion of shareholder value -concept and refers first of all in general, all factors and parameters which increase therefore shareholder value, the company's value for shareholders increase.

The exact definition of what is a value driver and what is not is just as controversial in the literature, in companies and in consultations as the shareholder value concept as a whole.

The cash flow of a company can be seen as an undisputed "hard" value driver . In addition to such "hard" value drivers such as cash flow, cost of capital , sales development and tax rate, the so-called "soft factors" such as employees are also discussed as "real value drivers".

Value drivers are broken down as follows: Revenue, Investment, Cost and Non-Financials.

Financial value drivers

Financial results, resulting from the activities and decisions within a company. (e.g. sales growth, return on sales, income taxes).

Operational value drivers

Results that precede the financial parameters and represent levers for corporate success that can be influenced at the different organizational levels (e.g. product quality, durability, etc.)