This business guide is an essential reference for companies who apply shareholder value concepts or economic profit measures in company analysis or decision-making. It addresses practical performance measurement issues, with numerous examples, and provides detailed steps for designing a company-specific economic profit measure. It also outlines how to incorporate economic profit into financial management practices such as investment analysis and incentive compensation. The author provides useful background details that show how economic profit links to shareholder's value, and TSR, a topic often misunderstood by finance practitioners. The book is an invaluable resource for financial managers, accounting professionals, consultants, and equity analysts who evaluate company performance or make financial decisions using value creation principles.
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Craig Savarese is currently with the Boston Consulting Group, having previously been a Vice President with Stern Stewart & Co.
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