In the Expectations market, investors assess the real market activities of a company today and on the basis of that assessment, form expectations as to how the company is likely to perform in the future. The consensus view of all investors and potential investors as to expectations of future performance shapes the stock price of the company. The objective of performance measurement and management is to increase the shareholder value, profitability, growth, competitiveness, quality, customer satisfaction, etc. of an organization resulting in improved performance. FCFE (Free Cash Flows to Equity) represent a smoothed out measure of what companies can return to their stockholders over time in the form of dividends and stock buybacks. It is interesting to know that attempts have been made to study the historical data and measure what has been the performance of the Company in the past, but efforts have not been made to forecast/predict the Shareholder Value Creation. Predicted Shareholder Value Creation shall also act as a benchmark for the performance of the Company in the direction of Value Creation. Hence an attempt has been made in this paper to forecast the shareholders Value Creation which is the expectation of the large number of Investors by developing Cash Flows Based Model for forecasting Shareholder value creation in the Companies.