FGV®Future Growth Value
Future Growth Value measures the portion of market value attributed to EVA® growth. FGV® can be driven by market expectations of productivity improvements, organic growth, and value-creating acquisitions. Companies can calibrate their incentive plan to performance targets tied to the annual EVA® growth implied by FGV®. Furthermore, the FGV® component can be a useful tool in benchmarking against the "growth plan" of competitors and evaluating investors' assessment of the wealth creation potential of new strategies and opportunities.