Shareholder value refers to the total worth or net asset value of a company's shares, which is determined by the performance and financial health of the business. It represents the collective value of all outstanding shares issued by a publicly traded corporation. Shareholders are the owners of the company, and their primary goal is to maximize returns on their investments through dividends or capital appreciation. Therefore, shareholder value refers to the amount of wealth generated for shareholders as a result of successful business operations, strategic decisions, and effective management.