Measuring the Impact of Pricing on Shareholder Value

The Enterprise Value of Pricing® is an innovative approach developed by Simon-Kucher. 

Analyzing financial data to develop approaches to financial strategy and price evaluation, Enterprise Value of Pricing® reveals how better pricing directly impacts shareholder value.

As a C-level executive, you know that exercising pricing power will drive top-line growth and boost profits. You also know that your ultimate metric – the one your board and the capital markets measure you against – is shareholder value.

We created the Enterprise Value of Pricing® metric, which expresses the ratio of two important numbers for any executive:

  • the additional enterprise value from a one-percent price increase that sticks
  • the average analysts’ expectations for the change in enterprise value over the coming 12 months.

Create your equity story around the quality of your pricing

The Enterprise Value of Pricing® metric helps to identify and seize pricing opportunities and to build a much stronger equity story around pricing. It can change perspectives, guide planning decisions, and simplify communication in a number of ways. Simon-Kucher clients, who implemented the Enterprise Value of Pricing®, have seen their profits increase by up to 5%-pts. in EBITDA.

Simon-Kucher offers financial strategy or management services and business management consulting services. Get in touch with our experts now!

Interested in learning more about Enterprise Value of Pricing®Click here to watch our webinar

Experts