Shareholder Value Analysis (PowerPoint PPT)

This presentation introduces a Shareholder Value Analysis approach of a leading consulting firm, using a global auto maker as an example.

The presentation begins by analyzing the auto maker's historical performance and improvement opportunities, and then conducts competitive benchmarking, identifies its future growth strategies and puts forward an action plan for growth.

The document also introduces a Value Creation Framework that aligns a company's Total Shareholder Return (TSR) with its value drivers to identify value creation opportunities. It is an illustrative presentation of how to apply the framework to strategic analysis. See another posting at this website – Value Creation Framework.

The slides can be adapted for use with other organizations.

The document provides a detailed analysis of ABC Auto's performance relative to its peers, highlighting its ability to outperform in Total Return to Shareholders (TRS) despite industry challenges. The analysis spans a five-year period, offering insights into the company's strategic positioning and competitive edge. It also contrasts ABC Auto's performance with that of other major players like Toyota, Honda, and VW, emphasizing the company's strengths and areas needing improvement.

The presentation delves into the company's growth expectations, stressing the need for an aggressive long-term growth rate to maintain its current stock price. It outlines the implications of these growth expectations on ABC Auto's future strategies and operational focus. The document also examines the company's working capital management, identifying net receivables as a significant driver of its high working capital ratio.

In addition, the presentation addresses the mixed opinions from Wall Street analysts regarding ABC Auto's future performance. Some analysts express cautious optimism about the company's restructuring efforts, while others remain skeptical about its ability to achieve a turnaround. The document concludes with a comprehensive Value Creation Roadmap, linking TRS with key value drivers and offering actionable insights for enhancing shareholder value.