7
Underlying analysis and key
value drivers
What topics are covered in this chapter?
What is a value driver?
How to identify key value drivers
Structuring the underlying analysis
Generic operational value drivers
Framework for the underlying analysis
Temporary monopolies – an additional tool for the underlying analysis
Summary
In this chapter, we will be taking a closer look at the so-called underlying
analysis and key value drivers.
As stated in the previous chapter, the result of a DCF valuation is entirely
dependent on the data entered into the model. These inputs are the result
of an analysis of:
the macroeconomic situation
the industry structure and trends
the company strengths and weaknesses and key economic and finan-
cial variables ...