Monitor value driver changes quarter-to-quarter to identify inflection points.
Module Category: Analysis Tactics and Techniques
Key Concept: Instead of making one set of equity value creation measurements for a holding period, analysts can break a hold into several annual or quarterly periods and measure a set of value drivers for each one. Such models measure total equity value driven by components like Revenue Growth as the sum of all annual or quarterly Revenue Growth measurements. This can create a more accurate and almost continuous view of equity value change that identifies when significant value creation events occur.