Tim Cook has generated roughly $700 million in daily value for Apple through operational excellence, not just innovation. The speaker explains how operators create value: if a business trades at five times profit, an extra $100,000 in profit adds $500,000 to enterprise value.
Sounds insane, but Tim Cook has created $700 million a day of value for Apple since the day he took over as CEO. This chart proves it. The compounding market cap has been ridiculous. But here's the part that most founders don't understand. They think the value comes from innovation, which it can. Tim Cook's value creation comes from operations and execution. Operators get paid on multiples of enterprise value, not just cash. So if your business is worth 5 times its yearly profit, every $100,000 in profit you add is half a million dollars in enterprise value.