A method for valuing the entire equity in a company, based on the net present value of future cash flows. Developed by Alfred Rappaport in the 1980s, Shareholder Value Analysis (SVA) emphasizes the time value of money and focuses on future performance rather than past accounting records.
Shareholder Value Analysis (SVA) is a financial management method that focuses on increasing the value delivered to shareholders through strategic decision-making and performance evaluation.
Identifying and managing value drivers is crucial for forecasting future cash flows and ensuring the long-term viability of a business.
