Value Creation Index

The video tutorial explains an approach developed by Capgemini and Ernst & Young, focusing on a comparison matrix that links a company's market valuation with its non-financial performance factors. These factors include innovation, organizational talent, and brand recognition, which are not captured in traditional financial reports. The tutorial emphasizes the importance of identifying non-financial value drivers and linking them to performance metrics, ultimately connecting them to market valuation. This approach highlights the significance of non-financial factors in determining a company's worth.

What is the significance of linking non-financial factors to performance metrics?

Explain the relationship between value drivers, performance, and market valuation.