We compute the Shareholder Value Creation of Santander, BBVA, Popular and Bankinter between 1991 and 2010. The shareholder value creation during this period was: Santander -24 billion euros; BBVA -22; Popular 1.6 and Bankinter 0.6.The average shareholder return was: Santander 12.7%; BBVA 11.5%;...

90 companies out of 125 had negative return in 2010 (133 out of 136 in 2008). The companies destroyed value in 2010 (117 billion euros), and also in 2008 (420 billion euros) and in 2007 (17 billion euros). The average return of the 125 companies was-11% in 2010, 30% in 2009 and -40% in 2008

We compute the shareholder value creation and the return of the companies in the IBEX 35 for the 19-year period 1991-201'3 The average return was 11%, but 2.9% was due to the decline in interest rates (from 13% to 5.5%). The shareholder value creation in the whole period was 23 billion euros,...

In this paper we propose an analytical solution to the circularity problem between value and cost of capital. Our solution is derived starting from a central principle of finance that relates value today to value, cash flow, and the discount rate for next period. We derive a general formulation...