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Economic Value Added Calculator



Economic Value Added


Defination / Uses

Profitable value added( EVA) is a measure of a company's monetary performance grounded on the residual wealth calculated by taking off its cost of capital from its operating profit, edited for taxes on a cash base.

The difference between these two measures is profitable profit or profitable value added. Therefore, a company creates value when it makes enough profit that exceeds the cost of the capital used. Investors use EVA to estimate how well a company performed compared to other investments. On the other hand, company operation uses EVA to assess how efficiently they've employed the capital they raised to meet their shareholders' prospects.