Tag: ROI

An Acceptable Hurdle Rate for OOH Projects is 15-25% Depending on Risk

A hurdle rate is the minimum acceptable return on new capital expenditures.  It is the excess cashflow (EBITDA) on a new out of home capital project divided by the incremental cost of the out of home capital project.  Two-thirds of Billboard Insider’s readers have a hurdle rate for new out […]

Most Billboard Insider Readers Want ROI in Excess of 20%

Yesterday we asked Billboard Insider readers what their return on investment (ROI) hurdle rate is for new capital projects.  Billboard Insider readers want a minimum ROI on out of home capital projects of at least 15%.   One third of Billboard Insider’s readers seek a ROI of 15-20% on new capital […]

What’s Your OOH Company Target ROI?

A reader asks: I was working with my Controller recently on some financial planning and forecasting and the question came up on what a target ROI should be on a billboard. The ROI or return on investment or hurdle rate is the minimum return you want to see from capital […]