Return metrics and shareholder value generation Marcelo Monteiro Perez

Abstract

Maximizing the value of a company for its shareholders is the central objective of all managers. Therefore, corporate management focused on generating value is not only of fundamental importance for the survival of the company in the long term, but also stimulates its growth through new investments by its shareholders and creditors. But how can this generation of value be measured? How can we assess whether the results obtained are adequately remunerating the company's sources of financing, given the risks involved? This article presents accounting concepts for analyzing results such as: ROI, ROE, EPS and EBITDA, concluding its theoretical and practical presentation by presenting modern concepts such as EVA, MVA, CVA, TSR and CFROI. Despite the understanding that all these established methods for determining value generation have the same focus, that is, they measure the same object, equity, through its mutations, the results, comparative analyses are prepared to highlight technical and conceptual differences between these methods. This article also analyzes the results of companies in the steel sector in Brazil, according to the various metrics presented.