Скачать или смотреть FM III- Business Valuation:- Economic Value Added (EVA) Practical

Economic Value Added (EVA) explain whether a Business unit Best Utilizes its Assets to Generate Return and Maximize Shareholder’s Value.
EVA is just a way of measuring an Operation’s Real Profitability. It measures Productivity of all the Factors of Production viz. Land, Labour, Capital, Entrepreneur & Management.
EVA is a Residual Income that Subtract the Cost of Capital from the Operating Profits generated by the Business.
EVA is an Excess Profit of a Firm after Charging Cost of Capital.
Therefore, EVA is –
The Difference between Net Operating Profit After Tax (NOPAT) and the Capital Charge for Both Debt and Equity.
EVA is Positive (Beneficial) if Net Operating Profit After Tax (NOPAT) Exceeds the Weighted Average Cost of Capital.
EVA = NOPAT – Capital Employed x WACC %