Importance As Russia demonstrates high rates of its development, it is relevant to devise national methods for managing the world's best methods (practices) and adapting them to the Russian realities. I refer to business value management practices, in particular. Objectives This research aims at formulating a compact model of value to be used for rapid assessments, determining considerable factors that influence the value, and illustrating the model with data of the Russian and US entities. The general objective of the research is to answer the question: how can we win (or at least not lose) a capitalistic game, the rules of which we learn in the course of the game? Methods I consider the business value model using discounted cash flows. Assuming that some parameters are constant and unchangeable, I use an analytical model to study how the key parameters influence the value. Results As opposed to the general opinion on that business value increases as the business grows, I prove that value may decrease even if revenue significantly rises, but there are other unfavorable factors in place. My assessments refer to the average Russian entity and the US public company. Under the existing circumstances, an increase in revenue decreases business value of the average Russian entity and raises business value of the US public company. Growth of national companies results in decreased business value, rather than its increase, due to high capital intensity and risks. Conclusions and Relevance I conclude on the need to substantially alter the business efficiency parameters in order to ensure successful and long-term development of entities.
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