Matahari Department Store Wins Best Wealth Creator Award
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The award assessed the performance of the best public companies in Indonesia and Southeast Asia based on Wealth Added Index (WAI), a calculation method developed by Stern Stewart. WAI is a metric used to measure the wealth created by a company for its shareholders.
WAI is obtained by taking the adjusted total shareholder value minus the cost of equity, which is then multiplied by market value or market capitalization.
The calculation found an increase in the number of local companies that were able to generate wealth for shareholders.
Questions & Answers
Q.What methodology was used to determine the Best Wealth Creator Award winner?
What methodology was used to determine the Best Wealth Creator Award winner?
The award was based on the Wealth Added Index (WAI), a calculation method developed by Stern Stewart. This metric assesses the wealth a company creates for its shareholders, focusing on shareholder value.
Q.How is the Wealth Added Index (WAI) calculated?
How is the Wealth Added Index (WAI) calculated?
WAI is calculated by subtracting the cost of equity from the adjusted total shareholder value. This result is then multiplied by the company's market value or market capitalization.
Q.Which types of companies were assessed for this particular award?
Which types of companies were assessed for this particular award?
The award assessed the performance of leading public companies across Indonesia and Southeast Asia. The calculation observed a rise in local companies successfully generating wealth for shareholders.
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