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Shareholder Value

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Shareholder value is the value of a company to its shareholders. It is typically measured by the market capitalization of the company, which is the total value of all of its outstanding shares. Shareholder value can also be measured by the company's earnings per share, book value per share, or cash flow per share.

Why is shareholder value important?

Shareholder value is important because it represents the return that shareholders receive on their investment in the company. A company with a high shareholder value is more likely to attract investors and raise capital, which can help it to grow and expand. Conversely, a company with a low shareholder value is more likely to have difficulty raising capital and may be forced to sell assets or even declare bankruptcy.

How can companies increase shareholder value?

There are a number of ways that companies can increase shareholder value. Some of the most common include:

  • Increasing revenue
  • Reducing costs
  • Improving efficiency
  • Investing in new products and services
  • Acquiring other companies

By taking these steps, companies can increase their earnings, cash flow, and market capitalization, all of which can lead to higher shareholder value.

Careers

There are a number of careers that are related to shareholder value. Some of the most common include:

Read more

Shareholder value is the value of a company to its shareholders. It is typically measured by the market capitalization of the company, which is the total value of all of its outstanding shares. Shareholder value can also be measured by the company's earnings per share, book value per share, or cash flow per share.

Why is shareholder value important?

Shareholder value is important because it represents the return that shareholders receive on their investment in the company. A company with a high shareholder value is more likely to attract investors and raise capital, which can help it to grow and expand. Conversely, a company with a low shareholder value is more likely to have difficulty raising capital and may be forced to sell assets or even declare bankruptcy.

How can companies increase shareholder value?

There are a number of ways that companies can increase shareholder value. Some of the most common include:

  • Increasing revenue
  • Reducing costs
  • Improving efficiency
  • Investing in new products and services
  • Acquiring other companies

By taking these steps, companies can increase their earnings, cash flow, and market capitalization, all of which can lead to higher shareholder value.

Careers

There are a number of careers that are related to shareholder value. Some of the most common include:

  • Financial analyst
  • Investment banker
  • Portfolio manager
  • Corporate finance manager
  • Mergers and acquisitions specialist

These professionals typically have a strong understanding of finance and accounting, as well as a deep understanding of how companies can create value for shareholders.

Online courses

There are a number of online courses that can help you learn about shareholder value. Some of the most popular courses include:

  • Corporate Finance I: Measuring and Promoting Value Creation
  • Corporate Financial Decision-Making for Value Creation
  • Financial Modeling for Investment Banking
  • Mergers and Acquisitions: A Comprehensive Guide
  • Valuation: A Comprehensive Guide

These courses can help you learn the basics of shareholder value, as well as how to apply these concepts in your own career.

How online courses can help you learn about shareholder value

Online courses can be a great way to learn about shareholder value. They offer a number of advantages over traditional classroom courses, including:

  • Flexibility: Online courses allow you to learn at your own pace and on your own schedule.
  • Convenience: Online courses can be accessed from anywhere with an internet connection.
  • Affordability: Online courses are often more affordable than traditional classroom courses.
  • Variety: Online courses offer a wide variety of topics to choose from.
  • Interaction: Online courses often offer opportunities to interact with other students and instructors through discussion boards, webinars, and other online tools.

If you are interested in learning more about shareholder value, online courses are a great option.

Are online courses enough?

While online courses can be a great way to learn about shareholder value, they are not enough on their own. In order to fully understand this topic, you will need to supplement your online learning with other resources, such as books, articles, and videos. You may also want to consider taking a traditional classroom course or working with a tutor.

Conclusion

Shareholder value is an important concept for anyone who is interested in investing in stocks or working in the financial industry. By understanding shareholder value, you can make better investment decisions and increase your chances of success in your career.

Path to Shareholder Value

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Reading list

We've selected 23 books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Shareholder Value.
Collection of essays written by Warren Buffett, one of the most successful investors of all time. It provides insights into Buffett's investment philosophy and must-read for anyone interested in value investing.
Is considered the bible of value investing. It was written by Benjamin Graham, the father of value investing, and provides a timeless framework for investing in stocks.
Provides a comprehensive overview of financial crises throughout history. It is written by one of the world's leading experts on financial crises and must-read for anyone interested in understanding the causes and consequences of these events.
Provides a comprehensive overview of shareholder value and how it can be maximized. It is written by two leading experts in the field and is considered a must-read for anyone interested in corporate finance.
Provides a classic account of the 1929 stock market crash. It is written by one of the most influential economists of the 20th century and must-read for anyone interested in understanding the history of financial crises.
Provides a sweeping history of money and finance. It is written by one of the world's leading historians and must-read for anyone interested in understanding the role of money in society.
Provides a detailed account of the rise and fall of the House of Morgan, one of the most powerful financial institutions in history. It is written by a Pulitzer Prize-winning historian and must-read for anyone interested in understanding the history of finance.
Provides a detailed overview of value investing, a strategy that focuses on investing in companies that are trading below their intrinsic value. It is written by three leading experts in the field and is considered a classic in the investment literature.
Classic in the field of security analysis. It was written by Benjamin Graham and David Dodd, two of the most influential investors of all time, and provides a detailed framework for analyzing stocks.
Provides a unique perspective on the financial markets from one of the world's most successful hedge fund managers. It must-read for anyone interested in understanding how the financial markets work.
Provides a classic account of the stock market. It is written by one of the world's leading financial journalists and must-read for anyone interested in understanding how the stock market works.
Provides a new perspective on the financial markets. It is written by one of the world's leading economists and must-read for anyone interested in understanding the future of finance.
Provides a comprehensive overview of risk management in financial institutions. It is written by one of the world's leading experts on risk management and must-read for anyone interested in working in the financial industry.
Seminal work in the field of financial management. It introduces the concept of economic value added (EVA), which measure of the value created for shareholders. This book is written for managers and investors who want to learn how to calculate and use EVA.
Provides a practical guide to creating shareholder value. This book is written for managers and investors who want to learn how to develop and implement strategies that will increase shareholder value.
Memoir of Michael Lewis's experiences as a bond trader on Wall Street. It provides a fascinating glimpse into the world of high finance and must-read for anyone interested in understanding how the financial markets work.
Provides a theoretical framework for understanding the relationship between shareholder value and the theory of the firm. This book is written for academics and researchers who want to understand the theoretical foundations of shareholder value.
Examines the role of corporate law in protecting shareholder value. This book is written for academics and researchers who want to understand how corporate law affects shareholder value.
Examines the relationship between shareholder rights and corporate social responsibility. This book is written for academics and researchers who want to understand how shareholder rights affect corporate social responsibility.
Examines the relationship between shareholder value and stakeholder theory. This book is written for academics and researchers who want to understand how stakeholder theory affects shareholder value.
Examines the relationship between shareholder value and the new economy. This book is written for academics and practitioners who want to understand how the new economy affects shareholder value.
Examines the relationship between shareholder value and corporate strategy. This book is written for academics and practitioners who want to understand how corporate strategy affects shareholder value.
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