economic value

The present value of expected future cash flows. For example, the economic value of a fixed asset would be the present value of any future revenues it is expected to generate, less the present value of any future costs related to it.

Accounting dictionary. 2014.

Look at other dictionaries:

  • economic value — ➔ value1 * * * economic value UK US noun [U] ACCOUNTING, FINANCE ► the value of an asset calculated according to its ability to produce income in the future: »Recent developments have substantially increased the economic value of the merger… …   Financial and business terms

  • economic value — The present value of expected future cash flows For example, the economic value of a fixed asset would be the present value of any future revenues it is expected to generate, less the present value of any future costs related to it …   Big dictionary of business and management

  • economic value — noun the amount (of money or goods or services) that is considered to be a fair equivalent for something else (Freq. 1) he tried to estimate the value of the produce at normal prices • Syn: ↑value • Derivationally related forms: ↑value (for: ↑va …   Useful english dictionary

  • economic value — financial worth …   English contemporary dictionary

  • Economic Value Added — Economic Added Value Treiberbaum Der Economic Value Added (EVA) oder Geschäftswertbeitrag ist eine Messgröße aus der Finanzwirtschaft, um die Vorteilhaftigkeit einer Investition zu berechnen. EVA stellt einen Residualgewinn dar und ergibt eine… …   Deutsch Wikipedia

  • economic value added — ( EVA®) See shareholder value added ( SVA). Since EVA is a registered mark, the phrase shareholder value added, or SVA, is often used instead. American Banker Glossary ( EVA) …   Financial and business terms

  • economic value of equity — ( EVE) One measure of exposure to interest rate risk. The difference between the sum of the present values of all cash flows from assets and the sum of the present values of all cash flows from liabilities. This difference is a proxy or estimate… …   Financial and business terms

  • economic value added — See economic profit. Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 …   Law dictionary

  • Economic value added — In corporate finance, Economic Value Added or EVA® is an estimate of true economic profit after making corrective adjustments to GAAP accounting, including deducting the opportunity cost of equity capital. GAAP is estimated to ignore US$300… …   Wikipedia

  • Economic Value Added - EVA — A measure of a company s financial performance based on the residual wealth calculated by deducting cost of capital from its operating profit (adjusted for taxes on a cash basis). (Also referred to as economic profit .) The formula for… …   Investment dictionary

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