Discuss how successful the selected firm has been at delivering value to its shareholders.Analyse the historical total shareholder return (TSR) and economic value

Pennsylvania Healthcare Legislation

Introduction to the selected organisation (what it is, who its key competitors are, how it operates, its industry sector) must be included

Part 1 – historical performance (over past 5 years)

Based on the systematic comparative appraisal of the selected firm’s historical performance:

Discuss how successful the selected firm has been at delivering value to its shareholders

Analyse the historical total shareholder return (TSR) and economic value

added (EVA) for the selected firm and its principal competitors (or appropriate benchmarks). You can also pursue or discount SVA / MVA and define you own value drivers based on the organisations annual statement.

To estimate EVA: estimate cost of capital x how much capital it has compared to what they actual earn, this explains whether they are creating more or less value then the cost of capital indicates; TSR – note down any significant events, changes in price up or down, price return plus dividends; choose an appropriate benchmark

For comparisons you should look at other firms within the same industry as your selected firm to comment on the firms performance using certain financial values and ratios.

Part 2 -prospective performance

Evaluate the current shareholder value of the selected firm.