Decision model · Enterprise economics

Which initiative creates the most economic value?

Compare up to three initiatives using the same operating logic: revenue contribution, recurring cost savings, implementation cost, ramp time and an illustrative valuation multiple that you supply.

Illustrative model only. This is not a company valuation. Calculations run locally in your browser and inputs are not transmitted or stored.
The idea

Translate the operating decision into economics before debating the headline.

Revenue impact × contribution margin + Recurring cost savings = Annual operating uplift → User-supplied multiple = Illustrative EV effect
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Replace this with a multiple you can defend for the relevant business or decision. The model does not source or recommend a multiple.
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Applied to revenue impact and recurring savings. Contribution margin and valuation multiple remain as entered.
Initiative 01
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Initiative 02
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Initiative 03
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Base-case comparison

Where the economics point.

The ranking below uses steady-state recurring operating uplift for enterprise-value illustration and separately shows first-year economics after implementation cost.

Steady-state operating upliftRelative scale across the three initiatives
Sensitivity

Downside, base and upside—without pretending they are probabilities.

The sensitivity range simply pressure-tests the operating impacts you entered. It does not estimate the likelihood of each case.

InitiativeDownside operating upliftBase operating upliftUpside operating upliftIllustrative EV range
Decision readout

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Model boundaries

What this model is—and is not—saying.

Enterprise value is illustrative.

Recurring operating uplift × your multiple is a simplified illustration, not a valuation. It does not distinguish enterprise value from equity value or account for net debt, tax, working capital, financing structure or market discounts.

Implementation cost is separate.

One-time implementation cost affects first-year economics and payback, but is not subtracted from the recurring earnings base used in the illustrative multiple calculation.

Timing matters.

The first-year realized uplift assumes a straight-line ramp to full run rate. Real initiatives may have step changes, delays, seasonality or dependencies.

Use contribution economics.

Incremental revenue should be paired with the contribution margin that actually applies to the decision. Revenue growth without the cost required to produce it overstates value creation.