Shareholder Value Creation in Tata Consultancies Ltd

To create value for shareholder is demand of today’s scenario. It is focused in most of the Indian industries. For measuring shareholder value economic value-based models is adopted. It helps to align managerial decision-making with the firm preferences. Economic Value- Added is a technique to measure wealth created for share holders. EVA is the surplus generated by an entity after meeting an equitable charge towards providers of capital. Companies which earn higher returns than cost of capital are creating shareholder’s value. The present paper examines the value creation strategy of TCS by analyzing the EVA as better tool of measuring performance. In this regards, EVA is measured to understand of wealth creation by the company.