DESCRIPTION
Maximizing shareholder value is the foremost priority for any publicly-owned company; and a top priority for most others. Value Creation is the management philosophy centered around that objective—maximizing of shareholder value. It is both an art and a science.
Value Creation is also independent of industry. In every industry, there are organizations that substantially beat the industry average—and those that lag it.
The most comprehensive and widely accepted measure of Value Creation is Total Shareholder Return (TSR). TSR measures the change in a public company's stock price, in addition to its dividend yield, over a period of time.
This TSR PowerPoint presentation discusses the 3 core drivers to TSR:
1. Changes in Fundamental Value- Fundamental Value represents the discounted value of the future cash flows of our business—based on its margins, asset productivity, cost of capital, and growth.
2. Changes in Investor Expectations – Investor expectations can change our short-term valuation. Investor expectations are measured by a company's expectation premium, which is the different between its actual stock price and the price derived from an analysis of its underlying fundamentals.
3. Distribution of Free Cash Flow – This represents changes in the distribution of free cash flow to investors. The distribution must be decided among dividend yield, share buybacks, and debt repayment.
A successful Value Creation Strategy coordinates the 3 drivers to TSR and manages the tradeoffs among them.
Additional topics discussed include Value Creation Strategy, Total Shareholder Return formula, TSR questions for the CEO, Long-term vs. Short-term Value, Dividends, Revenue Growth, Value Multiple, among others.
This Total Shareholder Return (TSR) presentation also includes slide templates illustrating (1) Total Shareholder Return (TSR) Core Drivers and (2) Value Creation Process. Furthermore, as a fully editable, customizable PPT presentation, you can re-purpose the majority of these Total Shareholder Return slides in your own business presentations.
The presentation offers a detailed breakdown of the Total Shareholder Return (TSR) formula, providing actionable insights for CEOs. It includes templates for illustrating TSR core drivers and the value creation process, making it a versatile tool for business presentations.
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Source: Best Practices in Value Creation, Total Shareholder Value PowerPoint Slides: Total Shareholder Return (TSR) PowerPoint (PPT) Presentation, LearnPPT Consulting
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