Economic Value Added


Economic Value Added
= EVA
A performance measure used to evaluate a company's economic profit (i.e., the value added to a company by its activities in a given time period). It is the calculation of a company's net operating profit after taxes, minus a cost of capital charge for the investment or capital employed in the business. The Stern Stewart consulting organization registered EVA as a tradename in the 1990s. In 1997 The Economist magazine reported that more than 300 firms worldwide had adopted it, including Coca-Cola and AT&T.

Accounting dictionary. 2014.

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  • 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 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 — Valeur économique ajoutée Pour les articles homonymes, voir EVA. La valeur économique ajoutée (Economic Value Added, EVA) est l excédent de résultat du à l activité d une organisation par rapport au coût du financement des apporteurs de capitaux …   Wikipédia en Français

  • Economic Value Added — EVA A performance measure used to evaluate a company s economic profit (i. e. , the value added to a company by its activities in a given time period). It is the calculation of a company s net operating profit after taxes, minus a cost of capital …   Big dictionary of business and management

  • economic value added — Fin a way of judging financial performance by measuring the amount by which the earnings of a project, an operation, or a corporation exceed or fall short of the total amount of capital that was originally invested by its owners. EXAMPLE EVA is… …   The ultimate business dictionary

  • economic value added — /ˌi:kənɒmɪk ˌvælju: ædɪd/ noun the difference between a company’s profit and the cost of its capital. A company does not have simply to make a profit from its business – it has to make enough profit to cover the cost of its capital, including… …   Dictionary of banking and finance

  • 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

  • Economic Value Added (EVA) — Kennzahl, die im Rahmen eines umfassenden Performancemessungs und Wertsteigerungskonzepts zur Anwendung kommt. Der EVA Ansatz errechnet ein wertorientiertes Residualeinkommen der zu bewertenden Investition. Eine Investition ist nach diesem Ansatz …   Lexikon der Economics


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