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Shareholder value analytics

What is it?

Once a company becomes publicly listed there are certain analytics that will be applied to the business to help investors and analysts decide how strong your business is. The results and interpretation of these tools will influence whether shareholders decide to buy, sell or hold your stock. Shareholder value analytics (SVA) is one of the tools that are commonly used.

SVA is a calculation of the value of a company made by looking at the returns the business provides to its shareholders and effectively measures the financial consequences of strategy. The assumption driving this analysis is that the directors of the business will always seek to maximise shareholder value and wealth.

Why does it matter? ...

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