By
Borsgade
As part of Morgan Stanley Investment Management, Michael Mauboussin has published an article that explores the concept of “Total Shareholder Returns”. In Danish, it can best be described as the total return we as investors expect to get from the increase in value of a given share price plus any dividends paid during the period.
Mouboussin analyzes which sources drive total returns and which do not. Among the most significant are revenue growth, EBIT margin and reinvestment rate.
I forbindelse med artiklen har de lavet en tjekliste til vurdere potentialet for vores forventede afkast, som kan varmt anbefales (se rapportens s. 20).
We can break down TSR into drivers, including net income growth, change in shares outstanding, P/E multiple change, and the benefit of reinvesting dividends. We examine each of these drivers and link them to underlying economic principles. […]
We explain TSR [Total Shareholder Returns] through drivers including EPS growth and changes in the P/E multiple. We have noted the severe limitations of EPS and multiples to explain value. To compensate, we seek to link these concepts to underlying fundamental drivers. Doing so gives investors and executives a framework to understand the past and to anticipate the future.
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