Measuring the Impact of Pricing on Shareholder Value

The Enterprise Value of Pricing is an innovative approach developed by Simon-Kucher. 

Analyzing financial data to develop approaches to financial strategy and price evaluation, ENTERPRISE VALUE OF PRICING reveals how better pricing directly impacts shareholder value.

As a C-level executive, you know that exercising pricing power will drive top-line growth and boost profits. You also know that your ultimate metric – the one your board and the capital markets measure you against – is shareholder value.

We created the Enterprise Value of Pricing metric, which expresses the ratio of two important numbers for any executive:

  • the additional enterprise value from a one-percent price increase that sticks
  • the average analysts’ expectations for the change in enterprise value over the coming 12 months.

Create your equity story around the quality of your pricing

The Enterprise Value of Pricing metric helps to identify and seize pricing opportunities and to build a much stronger equity story around pricing. It can change perspectives, guide planning decisions, and simplify communication in a number of ways. Simon-Kucher clients, who implemented the Enterprise Value of Pricing, have seen their profits increase by up to 5%-pts. in EBITDA.

Simon-Kucher offers financial strategy or management services and business management consulting services. Get in touch with our experts now!

Interested in learning more about Enterprise Value of Pricing? Click here to watch our webinar

Experts

Enterprise Value |
Equity |
Shareholder Value |
Pricing |
Enterprise Value of Pricing