Strategically, intrinsic value is not maximized solely by the maximization of Current Operations Value (COV), but by the simultaneous maximization of the sum of its two components–COV and Future Growth Value (FGV), including the value of real options. Ultimately, this requires business leaders to address, in the context of value-based strategy, both the renewal of future growth value through investments in intangibles and the future, as well as the conversion of opportunities into performance, via execution or operational excellence. The implications for business strategy, financial policy, financial management and compensation are far-reaching.
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