Value Network Analysis

AAA

DEFINITION of 'Value Network Analysis'

The analysis of the members and the interactions of these members within a value network. Value network analysis is usually done through visualizing the relationships using a chart or web. The participants are evaluated both individually and on the benefit they bring to the network. Value network analysis looks at the business as a whole, including financial and non-financial aspects of operations.

INVESTOPEDIA EXPLAINS 'Value Network Analysis'

Value networks are made up of members and their interactions while producing a product or providing a service. These connections are extremely important in identifying strong companies as well as finding a company's potential risks. For example, if a network member has a large influence, the loss of that member could devastate the entire group. This is an example of intrinsic value analysis because there is value, but it is hard to place a price on.

RELATED TERMS
  1. Social Networking

    The use of internet-based social media programs to make connections ...
  2. Network Effect

    A phenomenon whereby a good or service becomes more valuable ...
  3. Extrinsic Value

    The difference between an option's market price and its intrinsic ...
  4. Fair Value

    1. The estimated value of all assets and liabilities of an acquired ...
  5. Value Trap

    A stock that appears to be cheap because the stock has been trading ...
  6. Intrinsic Value

    1. The actual value of a company or an asset based on an underlying ...
Related Articles
  1. Can't Get A Bank Loan? Turn To Your ...
    Credit & Loans

    Can't Get A Bank Loan? Turn To Your ...

  2. Getting To Know Business Models
    Entrepreneurship

    Getting To Know Business Models

  3. Reality Check: Why Startups Fail
    Entrepreneurship

    Reality Check: Why Startups Fail

  4. Accretion / Dilution Analysis: A Merger ...
    Fundamental Analysis

    Accretion / Dilution Analysis: A Merger ...

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center