Financial Management

This query is : Resolved

Share Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

01 December 2009 What is Economic Value Added

CA CS CMA Srinivasan N

CA CS CMA Srinivasan N (Expert)
Follow

01 December 2009 Economic Value Added or EVA is a concept devised by Stern Stewart & Co. Economic value added represents the true economic profit of a company. It is calculated by deducting the COST OF CAPITAL from the NET OPERATING PROFIT AFTER TAXES.
You can refer the following links for more explanation or mail me at srini.ca@gmail.com

http://www.evanomics.com/download/Intro.pdf

http://en.wikipedia.org/wiki/Economic_value_added

http://www.investopedia.com/terms/e/eva.asp?viewed=1

Rgds
Srinivasan