Company value, measure of management performance

Financial performance (net profit, FCF, Value Added) as a classic reference of work efficiency and implicitly of the carried out management activity, in time was replaced by a more complex indicator - enterprise value (EV), which takes into account, besides the financial performance, also the company internal and external risks as well as the financing costs. Therefore the purpose of management decisions is to increase the value of the company. Motivation to increase enterprise value is manifested by the shareholders (increase their wealth), managers, potential investors (hopes to have gains), employees (high salaries, good working conditions), creditors (loans, low risk and high yield), customers (low cost, high quality) and state (higher taxes, more jobs).