Definition for : Market indicators of value creation

Stock market Value creation is reflected in two major indicators: Market value Added and Total Shareholder return; hence, they are highly sensitive to sations about Future profits, even though the company's Return on Capital employed is higher than its Cost of capital (see Value creation). In the long-term, these indicators converge to Economic indicators of value creation. Market indicators of Value creation reflect the anticipations of Future Value creation.

(See Chapter 28 investment criteria of the Vernimmen)

To know more about it, look at what we have already written on this subject