ANALYSIS AND EVALUATION OF COMPANY VALUE INDICATORS FOR SHAREHOLDERS AND THE MARKET

Abstract

This research aims to expand upon existing theoretical frameworks by examining the reliability of various company value indicators as measures for shareholders and the market. The study focuses on assessing the effectiveness of these indicators in reflecting a company's true value and their utility in investment decision-making.

The analysis encompasses a range of value indicators, including market-based metrics, accounting- based metrics, hybrid indicators such as Return on Equity (ROE), Tobin's q ratio, and Market-to-Book ratio, as well as newer metrics like Shareholder/Sustainable Value Added, Economic Value Added (EVA), Cash Flow Return on Investment (CFROI), and Environmental, Social, and Governance (ESG) factors. Additionally, the study considers indicators within stakeholder groups, exemplified by the Balanced Scorecard.
The scientific contribution of this research lies in the analysis and confirmation of the superiority of contemporary value indicators -such as Rappaport's Shareholder Value Added (SVA), Economic Value Added (EVA), and the Balanced Scorecard- over traditional market, accounting, and hybrid metrics in identifying and enhancing value. However, their practical application is often hindered by the complexity of implementation.