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Stern Stewart’s RWA™ analysis services utilize its proprietary Relative Wealth Added tool to compare the share price performance of a company over a chosen period against that of a defined group of peers, taking account of new share issues and levels of financial risk. It compares the shareholder value created by the company with the average of its peers. This can either be expressed as in absolute or monetary terms (RWA™) or as a percentage of the initial Enterprise Value (%RWA™).

RWA™ = Beginning Market Cap x (Adjusted TSR - Peer-group Average Adjusted TSR)

% RWA™ = RWA™ ÷ Enterprise Value

The TSR and (effectively) Market Cap are adjusted to include, as a weighted average, the performance of shares issued during the period, and other capital changes. The peer group TSR also includes an adjustment for leverage to make it comparable to the measured company.