Skill: linuszz/shareholder-value (version 1.0.0)

--- name: shareholder-value description: "Calculate economic value added and shareholder return. Use for investment analysis, valuation, and capital allocation decisions." --- # Shareholder Value Analysis ## Metadata - **Name**: shareholder-value - **Description**: Shareholder Value Added (SVA) and economic profit analysis - **Triggers**: shareholder value, SVA, economic profit, valuation, capital allocation ## Instructions Analyze how business decisions create or destroy shareholder value. ## Framework ### The SVA Identity ``` SVA = NOPAT + Change in Working Capital - CapEx + Market Value Change Where: - NOPAT = Net Operating Profit After Tax - Change in Working Capital = (Ending WC - Beginning WC) - CapEx = Capital Expenditure - Market Value Change = (Ending MV - Beginning MV) ``` ### SVA Components | Component | Formula | Definition | |-----------|----------|------------| | **NOPAT** | EBIT × (1 - Tax Rate) | Profit after tax, available to all stakeholders | | **WC Change** | ΔWorking Capital | Investment/recovery from operations | | **CapEx** | New Fixed Assets - Disposals | Investment in growth or efficiency | | **MV Change** | ΔMarket Value | Change in intrinsic business value | | **Economic Profit** | NOPAT + Cost of Capital (WACC × Capital) | True economic profit created | ## Output Process 1. **Define scope** - Business unit or entire company 2. **Gather data** - Financial statements, market valuations 3. **Calculate NOPAT** - EBIT, taxes, interest 4. **Calculate components** - WC change, CapEx, MV change 5. **Compute SVA** | Apply SVA identity 6. **Analyze economic profit** - Calculate cost of capital 7. **Assess value creation** - Positive vs negative SVA 8. **Recommend strategy** - Value-creating or value-destroying ## Output Format ``` ## Shareholder Value Analysis: [Subject] ### Executive Summary | Metric | Value | Assessment | |--------|-------|------------|-------------| | **NOPAT** | $X M | ✅ Profitable base | | **Economic Profit** | $Y M | ✅ Value created | | **SVA** | $Z M | ⬆️ Value added | ⬇️ Value destroyed | | **ROI** | X% | ✅ Above cost of capital | --- ### SVA Calculation | Year | NOPAT | WC Change | CapEx | MV Change | SVA | |------|------|----------|--------|----------|--------| | 2024 | $X M | -$Y M | $Z M | $W M | $A M | | 2025 | $X M | +$Y M | $Z M | $W M | $B M | | 2026 | $X M | +$Y M | $Z M | $W M | $C M | | 2027 | $X M | +$Y M | $Z M | $W M | $D M | | **Total** | $X M | $Y M | $Z M | $W M | $Σ SVA | --- ### Value Creation Analysis **Value Created (Σ Positive SVA)** - Years: [Which years added value] - Cumulative: $X M - Drivers: [What created value?] **Value Destroyed (Σ Negative SVA)** - Years: [Which years destroyed value] - Cumulative: $Y M - Drivers: [What destroyed value?] ### Economic Profit Analysis | Year | NOPAT | Capital Employed | Cost of Capital (10%) | Economic Profit | |------|--------|----------------|-----------------------------|----------| | 2024 | $X M | $Y M | $Z M | $A M | | 2025 | $X M | $Y M | $Z M | $B M | | 2026 | $X M | $Y M | $Z M | $C M | | 2027 | $X M | $Y M | $Z M | $D M | | **Total** | $X M | $Y M | $Z M | $Σ SVA | --- ### Investment Evaluation | Project | SVA | NPV | IRR | Payback | Decision | |---------|------|---------|---------|------------| | [Project A] | $X M | $Y M | Z% | X years | [Approve/Hold/Reject] | | [Project B] | $Y M | $W M | Y% | X years | [Approve/Hold/Reconsider] | | [Project C] | $Z M | $V M | W% | X years | [Approve/Hold/Reconsider] | ### Strategic Implications **Value-Creating Strategy:** 1. [Implication 1] - [Analysis] 2. [Implication 2] - [Analysis] **Value-Destroying Strategy:** 1. [Implication 1] - [Analysis] 2. [Implication 2] - [Analysis] **Capital Allocation Strategy:** 1. [Strategy 1] - [Analysis] 2. [Strategy 2] - [Analysis] ``` ## Tips - SVA focuses on cash flow, not accounting - Market value changes are speculative - be cautious - Economic profit reveals true value creation - Compare cost of capital across projects - Consider WACC carefully - affects all valuations - Multi-year analysis smooths volatility - Terminal value assumptions have huge impact - test scenarios ## References - Rappaport, Alfred. *Creating Shareholder Value*. 1998. - Copeland, Thomas & Weston, J. Fred. *Financial Theory and Corporate Policy*. 1988.


Security scan verdicts — ClawScan: clean | static analysis: clean | VirusTotal: clean | SkillSpector: clean (LOW)