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The Stern Stewart PERFORMANCE 1000

The Stern Stewart PERFORMANCE 1000 T h e S t e r n S t e w a r t PERFORMANCE 1000 GLOSSARY This ranking consists of the 1,000 largest publicly-owned U.S. industrial and non-financial service companies. MARKET VALUE ADDED (MVA): MVA is the difference between a company’s total market value (debt + equity) and its economic book value, or the amount that investors have contributed to produce that value. All amounts are millions of U.S. dollars. ECONOMIC VALUE ADDED (EVA): EVA™ is defined as net operating profits after tax minus the cost of capital. All amounts are millions of U.S. dollars. PROFITABILITY INDEX: The 5-year average rate of return on capital (r) divided by the 5-year average cost of capital (c*). An index above 1 indicates a company is earning more than its cost of capital; below 1, less than its cost of capital. COMPANY TYPE: Companies are classified according to profitability (r – c*) and capital growth as follows: Company Type 5-Yr r – c* Spread 5-Yr Capital Growth X-minus X Y Z Pre-Z <(2.5)% (2.5)%-2.5% >2.5% >2.5% <(2.5)% <25% <25% <25% >25% >25% Rank ’93 ’88 COMPANY Wal-Mart Stores, Inc. Coca-Cola Co. Philip Morris Companies Inc. General Electric Co. Merck http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Applied Corporate Finance Wiley

The Stern Stewart PERFORMANCE 1000

Journal of Applied Corporate Finance , Volume 6 (4) – Jan 1, 1994
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Publisher
Wiley
Copyright
Copyright © 1994 Wiley Subscription Services, Inc., A Wiley Company
ISSN
1078-1196
eISSN
1745-6622
DOI
10.1111/j.1745-6622.1994.tb00257.x
Publisher site
See Article on Publisher Site

Abstract

T h e S t e r n S t e w a r t PERFORMANCE 1000 GLOSSARY This ranking consists of the 1,000 largest publicly-owned U.S. industrial and non-financial service companies. MARKET VALUE ADDED (MVA): MVA is the difference between a company’s total market value (debt + equity) and its economic book value, or the amount that investors have contributed to produce that value. All amounts are millions of U.S. dollars. ECONOMIC VALUE ADDED (EVA): EVA™ is defined as net operating profits after tax minus the cost of capital. All amounts are millions of U.S. dollars. PROFITABILITY INDEX: The 5-year average rate of return on capital (r) divided by the 5-year average cost of capital (c*). An index above 1 indicates a company is earning more than its cost of capital; below 1, less than its cost of capital. COMPANY TYPE: Companies are classified according to profitability (r – c*) and capital growth as follows: Company Type 5-Yr r – c* Spread 5-Yr Capital Growth X-minus X Y Z Pre-Z <(2.5)% (2.5)%-2.5% >2.5% >2.5% <(2.5)% <25% <25% <25% >25% >25% Rank ’93 ’88 COMPANY Wal-Mart Stores, Inc. Coca-Cola Co. Philip Morris Companies Inc. General Electric Co. Merck

Journal

Journal of Applied Corporate Finance – Wiley

Published: Jan 1, 1994

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