Value Creation, Growth, and Return Metrics

This branch groups cash-flow-adjacent value measures that are about corporate growth, allowed returns, and shareholder value creation.

In this section

• External Growth Rate (EGR): Growth with External Financing
  External Growth Rate (EGR) refers to the rate of growth a company can achieve by leveraging external financing sources such as debt or equity. This metric is essential for understanding how companies can expand operations and scale their business beyond internally generated resources.
• Internal Growth Rate (IGR): Definition, Formula, Examples, and Applications
  Explore the concept of Internal Growth Rate (IGR), understanding its definition, formula, practical examples, and key applications in business growth strategy.
• Rate-of-Return Pricing: Setting Prices to Earn a Target Return on Invested Capital
  Learn what rate-of-return pricing means, where it is used, how it is calculated, and why it matters in regulated industries and capital-intensive businesses.
• Rate-of-Return Regulation: Meaning and Example
  Learn what rate-of-return regulation means and why utility regulators tie allowed prices to an approved return on invested capital.
• Wealth Added Index (WAI): A Shareholder-Value Metric Focused on Wealth Creation Above Expectations
  Learn what the Wealth Added Index measures and why it is used to judge whether a company created or destroyed shareholder wealth.