Innovate , Sustain, Thrive: The ITC Advantage
VALUE-BASED MANAGEMENT (VBM) Value-based management (VBM) is a philosophy and approach that focuses on creating and maximizing shareholder value. VBM emphasizes the importance of making decisions that align with the company's long-term goals and are designed to increase shareholder returns. Fundamental principles of VBM include: Focus on shareholder value: VBM prioritizes creating value for shareholders, who are the company's owners. This means that all decisions should be made to increase shareholder wealth. Long-term perspective: VBM takes a long-term view of decision-making instead of a short-term focus on quarterly earnings. This is because value creation is often a long-term process that requires patience and perseverance. Use of financial metrics: VBM uses a variety of financial metrics to measure and track value creation, such as economic value added (EVA), discounted cash flow (DCF), and return on invested capital (ROIC). Relevance of VBM: VBM is a rele...