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What Is Shareholder Value?

By Keith Noonan – Updated Jan 1, 2025 at 10:36 AM

Key Points

  • Profit generation boosts shareholder value as companies post higher stock prices when they shift from losses to profits.
  • Increasing earnings per share consistently raises stock value and shareholder returns.
  • A company enhances shareholder value by repurchasing shares, reducing share count, and boosting EPS.
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Compound Interest

Compound interest is what you get when you reinvest your earnings, which then also earn interest.
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About the Author

Keith Noonan
Keith Noonan is a contributing writer at The Motley Fool covering technology, consumer goods, and other sectors. He holds a bachelor’s degree in English from Boston College.
TMFNoons
The Motley Fool has a disclosure policy.

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