Abstract

We compute the Shareholder Value Creation of Iberdrola. The market cap of Iberdrola increased between December 1991 and December 2006 in 26.3 billion euros. The shareholder value creation during this period was 23.9 billion euros. The average shareholder return of Iberdrola in this 15 years was 19.1%, higher than that of the IBEX 35 (15.4%). Average inflation was 3.3%. We also compare the shareholder return of Iberdrola with that of other utilities.

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