What is the economic value added (EVA) method of valuation?
If you want to measure how much value a company creates for its shareholders, you might want to use the economic value added (EVA) method of valuation. EVA is a metric that calculates the difference between the company's net operating profit after tax (NOPAT) and the cost of capital invested in the business. In other words, EVA shows how much profit the company generates above the minimum return required by its investors.
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Spencer T. HakimianFounder at Tolou Capital Management, L.P.
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Rosangela M.Economista | Especialista em Planejamento Financeiro e Investimentos
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Khurram Ali Mubasher, MSc, ACMA, CGMA, CPATransforming future leaders in Accounting and Finance: 12 Years of Corporate Experience & Associate CIMA & CPA Member…