Originally published on Apple Podcasts

Driving outperformance: the power of economic profit

Fortuna partners Greg Milano and Marwaan Karame highlight how economic profit (EP) drives superior decision-making, cultural alignment, and, ultimately, value creation. Unlike traditional metrics like ROIC or EBITDA margin, EP reflects the true value a company creates—profit earned above the cost of capital. Their research shows that companies embedding EP into planning, decision-making, and incentives outperform the market by 7% annually. Real-world examples, such as Kimball Electronics and Varian Medical Systems, illustrate how adopting EP can trigger profitable growth, foster an ownership mindset, and lead to better capital allocation and portfolio optimization decisions. EP encourages better behaviors like smart spending and risk-taking, focused prioritization, and long-term thinking.

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The “Create More Value” podcast is a series of conversations with senior executives, board members, and other experts on how they were able to create exceptional value for their companies. These lessons can help leaders embrace better insights, decisions, and corporate culture to drive long-term results for all of their stakeholders. We cover a wide range of subjects, from corporate strategy to governance to best practices for boards and managements alike.

The podcasts is also available on other platforms, including Spotify, Pandora, Stitcher, and Amazon.

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