Shareholder value (also used in German; less frequently translated as owner value)

The market value of equity; this is usually determined by the future cash flows discounted to the reference date, less the market value of debt. – The return a shareholder earns on his or her shareholding, compared with the return on an approximately equal investment (the amount of interest the shareholders of a company could earn on their money invested in the firm, in an alternative investment at the same level of risk). – The present value of the future dividend stream expected to be generated by a company. – Understood as a corporate objective: all efforts to achieve a high but healthy increase in the value of the company in the interests of shareholders and employees (attempts of the management of a company to attain financial value to its shareholders, which are its literal owners, as well as to its employees). – There are also a number of other, but basically similar definitions of this term.

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Zitieren

Merk, G. (Hrsg.): „Shareholder value (also used in German; less frequently translated as owner value)“. In: Finanz- und Wirtschaftslexikon. https://www.gerhardmerk.de/shareholder-value-also-used-in-german-less-frequently-translated-as-owner-value-2/ (Stand: 25.07.2023).

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