PricewaterhouseCoopers and Automotive News Europe have calculated a Total Shareholder Return Index for European carmakers, suppliers and auto retailers.
The index reflects the average total shareholder returns for publicly-traded companies in each sector.
Total shareholder return measures the growth in value of an investment by assuming that all cash distributions have been reinvested. It includes capital gains, share buybacks and dividends.
The three categories surveyed include vehicle manufacturers with over 40 percent sales in Europe; European suppliers with annual sales over A100 million of which over 50 percent is in the automotive sector, and European retail companies with sales over A250 million. The returns have been adjusted to take into account currency movements.
The PwC SVI indices show the returns that an investor would achieve in a weighted portfolio of these equities.
'Creation of shareholder value is a key management objective and therefore worthy of robust analysis,' said Steve Utting, European Automotive Leader in Corporate Finance and Investment Banking Services at PricewaterhouseCoopers. 'Total shareholder return, which takes into account both rises and falls in the company's share price, dividends, share buybacks and new share issues is an objective and reliable measure of shareholder value for listed companies.'