We compute the shareholder value creation of the 123 companies that traded in the Spanish market during 2006. Santander was the top shareholder value creator, followed by Endesa, Telefonica, Arcelor, BBVA and Iberdrola. EADS was the top shareholder value destroyer. We also compute the...

We compute the Shareholder Value Creation of Iberdrola. The market cap of Iberdrola increased between December 1991 and December 2006 in 26.3 billion euros. The shareholder value creation during this period was 23.9 billion euros. The average shareholder return of Iberdrola in this 15 years was...

We compute the Shareholder Value Creation of Bankinter. The market cap of Bankinter increased between December 1991 and December 2005 in 3.9 billion euros. The shareholder value creation during this period was also 3.9 billion euros. The average shareholder return of Bankinter in this 15 years...

We compute the Shareholder Value Creation of Repsol. The market cap of Repsol increased between December 1991 and December 2005 in 27.5 billion euros. The shareholder value creation during this period was 7.4 billion euros. The average shareholder return of Repsol in this 15 years was 14.1%,...

The market cap of Telefonica increased between December 1991 and December 2006 in 72.5 billion euros. The shareholder value creation during this period was 28.2 billion euros. The average shareholder return of Telefonica in this 15 years was 17.7%, higher than that of the IBEX 35 (15.4%). We...

We compute the shareholder value creation of the companies in the IBEX 35 for the 15-year period 1992-2006. The average return was 15.4%, but 5.2% was due to the decline in interest rates (from 12.5% to 4%). The shareholder value creation was 196 billion euros. As usual, smaller companies were...

We compute the Shareholder Value Creation of Banco Santander (SAN). The market cap of BS increased between December 1991 and December 2005 in 85.7 billion euros. The shareholder value creation during this period was 20.7 billion euros. The average shareholder return of BS in this 15-year period...

We compute the Shareholder Value Creation of Endesa. The market cap of Endesa increased between December 1991 and December 2006 in 33,403 million euros. The shareholder value creation during this period was 29,892 million euros. The average shareholder return of Endesa in this 15 years was...

In this note we discuss four common methods of valuing firms:1.Discounting operating free cash flow at the weighted average cost of capital.2.Discounting equity free cash flow at the cost of equity.3.Valuing the firm using adjusted present value.4.Discounting the capital cash flow at the...

We compute the Shareholder Value Creation of Iberdrola. The market cap of Iberdrola increased between December 1991 and December 2005 in 17,279 million euros. The shareholder value creation during this period was 14,424 million euros. The average shareholder return of Iberdrola in this 14 years...