The portfolio companies' earnings generation
Through active ownership Industrivärden works long-term to develop and create value in the portfolio companies. The shareholder value that is generated in Industrivärden is based on the stock market’s valuation of the portfolio companies’ financial performance, dividend capacity and future outlooks.
Development of the portfolio companies’ earnings generation, which Industrivärden benefits from, can be illustrated as Industrivärden’s equity weighted share of the portfolio companies’ earnings.
During the last ten-year period, aggregate, weighted earnings increased by an average of 8% per year. Dividend income from the portfolio has grown by an average of 9% per year.
The stock market continuously measures the portfolio companies’ financial performance and future outlook, expressed in terms of the respective companies’ market capitalizations. During the last ten-year period, the aggregate market value of Industrivärden’s share of ownership in the portfolio companies has increased by an average of 7% per year. During the corresponding period, net asset value including reinvested dividend has grown by an average of 11% per year.