We compute the Shareholder Value Creation of Banco Santander (BS). The market cap of BS increased between December 1991 and December 2005 in 67,070 million euros. The shareholder value creation during this period was 4,158 million euros. The average shareholder return of BS in this 14 years was...

The market cap of Telefonica increased between December 1991 and December 2005 in 55,695 million euros. The shareholder value creation during this period was 12.442 million euros. The average shareholder return of Telefonica in this 14 years was 16.8%, higher than that of the IBEX 35 (13.7%). We...

Despite the recent growth of inflation linked derivatives market, the publicly available literature is very small. The various macro econometrics models are helpless when it comes to pricing inflation derivatives. The only freely accessible model, the Jarrow and Yildirim [4], relies on non...

In the latest edition of Principles of Corporate Finance (Brealey, Myers and Allen, 2006) the authors use a finite cash flow example to illustrate the valuation procedure for using the Discounted Cash Flow (DCF) method with the free cash flow (FCL) and the Adjusted Present Value (APV). The two...

In the latest edition of Principles of Corporate Finance (Brealey, Myers and Allen, 2006) the authors use a finite cash flow example to illustrate the valuation procedure for using the Discounted Cash Flow (DCF) method with the free cash flow (FCF) and the Adjusted Present Value (APV). The two...

We compute the Shareholder Value Creation of Repsol. The market cap of Repsol increased between December 1991 and December 2005 in 25,611 million euros. The shareholder value creation during this period was 6,736 million euros. The average shareholder return of Repsol in this 14 years was 14.5%,...

We compute the Shareholder Value Creation of BBVA. The market cap of BBVA increased between December 1991 and December 2005 in 47,386 million euros. The shareholder value creation during this period was 15,617 million euros. The average shareholder return of BBVA in this 14 years was 19.8%,...

This paper contains a collection and classification of 96 errors seen in company valuations performed by financial analysts, investment banks and financial consultants. The author had access to most of the valuations referred to in this paper in his capacity as a consultant in company...

2005 was a very good year for the shareholders of the companies in the Euro Stoxx 50. The shareholder value creation of these 50 companies was 292.9 billion. The companies that created more value for their shareholders were Total ( 30 billion), Sanofi-Synthelabo ( 23.2 billion) and Eni ( 20.7...

This paper contains a collection and classification of 96 errors seen in company valuations performed by financial analysts, investment banks and financial consultants. The author had access to most of the valuations referred to in this paper in his capacity as a consultant in company...