Shareholder Value

Shareholder value refers to the financial worth that shareholders derive from owning a company's stock. It is primarily measured by the company's stock price and dividends paid to investors. When a company performs well, its stock price usually rises, increasing the value of shareholders' investments. Creating shareholder value means making decisions and strategies that enhance this financial return. Companies often balance maximizing shareholder value with other goals, such as social responsibility and employee welfare, recognizing that sustainable success contributes to long-term value for shareholders.