TABLE 2
FROM:
Valuing customers
Thayne Forbes
BACK TO ARTICLETable 2. Multiple-period excess earnings example
| Business value | 109.0 | ||
|---|---|---|---|
| Rate of return | Present value of functional returns | ||
| Manufacturing | 8% | 45.6 | |
| Distribution | 11% | 5.5 | |
| Administration | 13% | 8.7 | |
| 59.9 | |||
| Royalty rate | Present value of royalty income | ||
| Brand value | 5% | 41.9 | |
| 41.9 | |||
| Excess returns | 7.2 |
