To assess the value of one firm’ shareholder, Alfred Rappaport stated the good way named Shareholder Value Analysis (SVA) in the period of 1980s, according to Rappaport (1986). Sales growth, operating profit margin, income tax rate, incremental investment in working capital, investment in fixed assets, required rate of return are the value drivers founded by Alfred. They have the significant principal influences to evaluating the value of shareholder (Arnold, 2008). This method is also used to analyze the shareholder value of TUI Travel Plc.
TUI Travel Plc. is well-known as a leisure international firm, which has the head office built in Crawley, the United Kingdom. This business operates in three principal segments, namely Mainstream sector, Specialist and Activity Sector, and Accommodation & Destinations Sector. Specifically, Mainstream sector is responsible for distributing, tour-operating and trading in airlines. In terms of Specialist and Activity, this sector offers services related to travelling, holiday. Meanwhile, Accommodation and Destination offers a huge number of services consist of hotel, transfers, meeting and arranging events.
Value drivers
Sale growth rate Based on the historical data collecting from annual reports, the sales growth rate fluctuated from -0 .49% to 4.09% for 5 years from 2009 to 2012 and these averages were calculated as 1.64%. The sales growth was decreased five times from 2009 to 2010. The lowest result for the period of 5 years in 2010 was consequences from the impact of the strategic transactions in Canada and Germany scheduled flying (Annual report 2010, 2010). From 2010 to 2011, the sales growth rate skyrocketed from -2.525 to 8.68% due to organic growth of 7%, foreign currency