Definition for : Market indicators of value creation
Stock market Value creation is reflected in two major indicators: Market value Added and Total Shareholder return; hence, they are highly sensitive to sations about Future profits, even though the company's Return on Capital employed is higher than its Cost of capital (see Value creation). In the long-term, these indicators converge to Economic indicators of value creation. Market indicators of Value creation reflect the anticipations of Future Value creation.
(See Chapter 28 investment criteria of the Vernimmen)
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