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Decomposing TSR


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The book recommended here by many people, McKinsey's Valuation (6th edition), talks about in chapter 4 about decomposing total shareholder return into parts to see what drives performance. I found it very interesting and thought it would be useful in my own investing process. I'm struggling to make a working spreadsheet though.

 

Essentially I'd love to re-create what they have for Henkel and Reckitt Benckiser on page 60, exhibit 4.7. Does anyone happen to already have that built into a spreadsheet and be willing to share it, or would someone feel like reaching a helping on hand on how to calculate those different TRS effects?

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  • 3 weeks later...

https://docs.google.com/spreadsheets/d/13WVrP-qt5HyAzFjoSTFeCkvj06CVh6-T9panfD4VnNo/edit?usp=sharing

 

There's a Google sheet for the two example companies, Reckitt-Benckiser and Henkel, that are mentioned in the McKinsey book. I'd be very happy if anyone had ideas (the sheet is open for commenting too) as to how those TSR decomposition tables below should be done/formulated so that one would get answers that make sense.

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