economic value added

Definitions (2)

1. EVA. The monetary value of an entity at the end of an time period minus the monetary value of that same entity at the beginning of that time period.
2. For a company, after-tax earnings minus the opportunity cost of capital. As with any other entity, economic value added essentially measures how much more valuable a company has become during a given time period.

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You may find that there are times where there is economic value added and you must take advantage of it.

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The success or failure of a company can be determined by calculating the company's economic value added for a given time period.

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He saw that the economic value added over six months in terms of the overall assets of the shoe factory was astonishingly high and he was very pleased with this outcome.

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economic value NOPAT