Appendix A
Inspirational list of key value
drivers
Financial value drivers
Average maturity of debt/average maturity of assets This measures the
firm’s sensitivity to changes in interest rates. The closer the ratio is to one,
the less sensitive is the company. Generally, you want assets to mature
at the same time as the debt since this means that the project is hedged
against changes in interest rates. If you have debts for two and a half years
but the project assets run for five years, you may need to refinance in the
middle of the project. At this time the interest may be completely different
from when you first calculated the financial viability of the project and
you may wind up with an unprofitable project.
Growth (in revenues, cash flows ...