What do we mean by value benchmarking?

The intention of benchmarking value is to look at a select few companies and examine their performance over a period of time through the facets of their value and their revenue.

Why Do We Use Public Companies

  • For the most part some of the bigger technology companies represent what many start-ups aspire to be sometime in the future. Its instructive therefore to look at how some of the larger companies have done over time, as opposed to just looking at their quarterly results. In terms of value growth its particularly useful to see which companies are just buoyed by the market and which companies independently manage to grow their value above the norm.
  • We can look at industries and get a sense of how much value these industries are able to generate.
  • Clearly we have a readily available source of data through public financial statements

Metrics

The metrics of interest are:

Tracked Companies

  • Apple
  • Dell
  • Google
  • Hewlett Packard
  • Oracle