Abstract. According to the logics of the efficient capital investment, the management of the investment of the saving capital in the company’s assets must conclude, on the end of the financial year, with a plus of real value (NPV > 0). From this point of view, in this paper we suggest the usage of an investment valuation model for the assessment of the company managerial and technological performance. Supposing the book value is a proxy of the just value (of assets and operational results) and supposing the capital cost is correctly estimated, we evaluate the company’s performance both by the net present value model, and also by the company’s ability to create a surplus of the invested capital (NPV >0). Our paper also aims to identify the performance of the financial breakeven point (for which NPV is at least equal to zero) as the minimum acceptable level for the company’s activity. Under this critical sales point, the company goes through the undervaluation of shareholders fortune even if the company’s sales are greater than accounting breakeven point. The performance’s activity level is one which the managers recover and surpass the cost of capital, cost which stand for the normal activity benchmark. The risks of applying of our suggested model we support go down to the confidence of accounting data and of the cost of capital estimating. In spite all of this, the usage of a sensitivity analysis to search an average NPV would leads to the company’s performance valuation within investment logic with a high information power.

Keywords: company performance; capital investment; capital cost; net present value; accounting break even; financial break even.