The Shareholder Value Report in the July 19 issue represents the second-quarter update of the Automotive News/PricewaterhouseCoopers Total Shareholder Return Index. The Index is calculated separately for automakers, suppliers and retailers. Total shareholder return, considered the best indicator of shareholder value, shows the change in the value of an investment in a period. Each company on the Automotive News/PricewaterhouseCoopers Total Shareholder Return Index is measured using share price movement, stock splits or buybacks and reinvestment of any cash dividends.
The calculation assumes all dividends are reinvested in additional stock. The index average is weighted by market capitalization a companys share price multiplied by shares outstanding so the performance of companies with larger market caps has a greater impact on the index.