economic value added

Definition 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.

Definition 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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Related Terms

economic value, NOPAT

'economic value added ' appears in the definitions of these terms on BusinessDictionary.com

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