Go to the Prior Tip Ahead of the Curve:
A Commonsense Guide to forecasting Business and Market Cycles
Go to the Next Tip "Optimizer's Curse"
Return to MaxValue Home Page
Link to the paper: cbuc06_fsv.pdf
What it's about: If the objective is maximizing shareholder value, that a corporation's balanced scorecard or executive dashboard should highlight shareholder value creation. Both historical and forecast should be displayed.
I suggest that companies continually monitor wealth creation and forecast (from the shareholders' perspective) shareholder value (or total return) for at least two strategies:
—John Schuyler, May 2006, Revised Aug 2006
Copyright © 2006 by John R. Schuyler. All rights reserved. Permission to copy with reproduction of this notice.