Shareholder Value Added
Shareholder Value Added
Definition
Shareholder Value Added is a measurement to see if it is worth the expense for an investor to buy stock in a company where Shareholder Value Added integrates financial statement of the business into one significant evaluation. It is also represent the economic profits generated by a business and beyond the minimum return required by all providers of investment. While, value is added when the overall net income cash flow of the business exceeds the economic cost of all the capital employed to produce the operating profit.
Methadology
The Shareholder Value Added is a most recommended approach in assisting management in decision making process where the application include performance monitoring, capital budgeting, output pricing and market value of the entity. Following are the formula used to calculate Shareholder Value Added:
Shareholder Value Added = NOPAT – Cost of Capital To obtain the Shareholder Value Added is by subtracting the cost of capital (WACC) from net operating profit (NOPAT).
Application
The function of Shareholder Value Added is to gives an insight into the investment performance of the business by identifying the opportunity cost of the investment, being the cost of capital and comparing this to the return generated from the business. The Shareholder Value Added is important for a company not only to compete with their competitor but also need to subject to the capital market regulation.
Fujitsu Shareholder Value Added * Technology – Development of the world’s first High Electron Mobility Transistor, an ultra high speed transistor, the introduction of the Japanese processing Extended Features and the successful launch of “PROPOSE”, an integrated services framework for information and communication system. * Customer – Fujitsu ideas and actions are originate form a customer centric approach to business where they will thinking of ways to contribute to their business activities. Fujitsu also
Definition
Shareholder Value Added is a measurement to see if it is worth the expense for an investor to buy stock in a company where Shareholder Value Added integrates financial statement of the business into one significant evaluation. It is also represent the economic profits generated by a business and beyond the minimum return required by all providers of investment. While, value is added when the overall net income cash flow of the business exceeds the economic cost of all the capital employed to produce the operating profit.
Methadology
The Shareholder Value Added is a most recommended approach in assisting management in decision making process where the application include performance monitoring, capital budgeting, output pricing and market value of the entity. Following are the formula used to calculate Shareholder Value Added:
Shareholder Value Added = NOPAT – Cost of Capital To obtain the Shareholder Value Added is by subtracting the cost of capital (WACC) from net operating profit (NOPAT).
Application
The function of Shareholder Value Added is to gives an insight into the investment performance of the business by identifying the opportunity cost of the investment, being the cost of capital and comparing this to the return generated from the business. The Shareholder Value Added is important for a company not only to compete with their competitor but also need to subject to the capital market regulation.
Fujitsu Shareholder Value Added * Technology – Development of the world’s first High Electron Mobility Transistor, an ultra high speed transistor, the introduction of the Japanese processing Extended Features and the successful launch of “PROPOSE”, an integrated services framework for information and communication system. * Customer – Fujitsu ideas and actions are originate form a customer centric approach to business where they will thinking of ways to contribute to their business activities. Fujitsu also