The theory of shareholder value is an issue that has to comprise a dichotomy in terms of the
standpoint from which it is looked at. Shareholders and the management of a company in many
cases still represent counterparts whereas interests do not continuously align. In this study
shareholder value theory is approached by investigating the shareholder perspective in
correspondence to shareholder wealth gains in the UK market environment through the
implementation of six major financial performance measurement methods including: the Price
Earnings ratio the Discounted Cash Flow Model the Dividend Valuation Model the Economic
Value Added the Market Capitalization the Capital asset Pricing Model and the shareholder
value approach as suggest by Alfred Rappaport. Having applied them to six selected stock listed
companies enabled the author to develop a shareholder value ranking according to their
financial performance and the deriving shareholder value dedication.
