Economic Value Added financial definition of Economic Value Added. Economic Value Added finance term by the Free Online Dictionary.

Economic value added (EVA)

A method of performance evaluation that adjusts accounting performance for investors' required return on investment. Suppose a division produces a 12% return on capital invested. Given the risk of the division's business line, if investors would usually require 14% on capital invested for this level of risk, the division destroyed shareholder value by the EVA metric. This Stern-Stewart has a trade mark on this term.

Economic Value Added

A company's after-tax earnings less its opportunity cost. The economic value-added measure is a metric of how well it has performed over a given period of time compared to how it could have performed.

Economic Value Added (EVA)

What Does Economic Value Added (EVA) Mean?

A measure of a company's financial performance that is based on the residual wealth calculated by deducting cost of capital from its operating profit (adjusted for taxes on a cash basis). Also called economic profit. The formula for calculating EVA is as follows: EVA = Net Operating Profit after Taxes (NOPAT) - (Capital × Cost of Capital).

Investopedia explains Economic Value Added (EVA)

This measure was devised by Stern Stewart & Co. and is used as a way to ascertain the true economic profit of a company.

Related Terms:
• Equity
• Market Value
• Net Operating Profit after Tax—NOPAT
• Return on Equity
• Return on Net Assets

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Cash Value Added CVA Economic Profit Economies of Scale Net Operating Profit after Tax Shareholder Value Added	Sehgal says GCPL tracks EVA or economic value added "rigorously . Soap opera! by Business Today More (New Delhi, India) Services make up almost half of the economic value added, but only one quarter of central taxes, due to the low tax receipts from the wholesale, retail an transport sectors. Increasing tax collection crucial for macroeconomic stability: Study by Balochistan Times (Baluchistan Province, Pakistan) Among the performance metrics used by many banks and other businesses in coming up with financial information for decision-making and evaluation are economic value added and risk-adjusted return of capital or RAROC. Eva and Raroc in Banking Performance Metrics by Sam Miller / Business community	Economic Exposure economic feasibility economic growth Economic Growth and Tax Relief Reconciliation Act of 2001 Economic Growth Rate Economic Imperialism Economic Income Economic Indicator Economic Indicators economic life Economic Moat economic obsolescence Economic Officer Economic Order Quantity Economic Profit Economic Recovery Tax Act economic rent Economic Rents Economic Risk Economic Shock Economic Slowdown Economic stimulus Economic Stimulus Act of 2008 Economic Surplus Economic Union Economic Value Added Economic Variable Economicidade Economics Economie du bienetre collectif Economie duale Economie Souterraine Economies of Scale Economies of scope Economies of vertical integration Economist Economy Ecoterrorism Ecotourism ECRI Index ECS ECU Ecuadorian Sucre ECV EDC EDGAR EDGAR Electronic Data Gathering, Analysis and Retrieval System Edge Act Edge Act Corporation Edge Corporations Edgy	economic system Economic systems Economic systems Economic Table Economic theories Economic theories Economic theories Economic theories Economic theories economic theory economic theory economic theory economic theory economic theory Economic Threshold Level Economic Tigers Economic times Economic Times Intelligence Group economic tool life Economic totalitarianism Economic totalitarianism Economic totalitarianism Economic Transformation in Europe Economic Transition and Business Development Economic Trends and Issues Economic union Economic Unions economic use Economic Useful Life economic value Economic Value Added Economic Value Engine for Damage Analysis Economic Value Increase Economic Value Management Economic Value of Equity Economic Value of Portfolio Equity Economic Value Sourced Economic Variable Economic Variables Economic Vitality and Housing Initiative economic war potential Economic warfare Economic warfare Economic Zone Economic Zone Economic Zones World Economic, Clinical and Humanistic Outcomes Economic, Cultural and Social Rights Economic, Legal and Social Implications Committee Economic, Legal, and Political Systems in Action Economic, Social and Cultural Council Economic, Social, and Cultural Rights Economic, Social, Environment, and Energy Economic, Technical or Organisational Economic-Cultural Type economical economical economical economical economical economical

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References in periodicals archive

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Cash Value Added
CVA
Economic Profit
Economies of Scale
Net Operating Profit after Tax
Shareholder Value Added

Sehgal says GCPL tracks EVA or economic value added "rigorously .

Soap opera! by Business Today More (New Delhi, India)

Services make up almost half of the economic value added, but only one quarter of central taxes, due to the low tax receipts from the wholesale, retail an transport sectors.

Increasing tax collection crucial for macroeconomic stability: Study by Balochistan Times (Baluchistan Province, Pakistan)

Among the performance metrics used by many banks and other businesses in coming up with financial information for decision-making and evaluation are economic value added and risk-adjusted return of capital or RAROC.

Eva and Raroc in Banking Performance Metrics by Sam Miller / Business community

Economic Exposure

economic feasibility

economic growth

Economic Growth and Tax Relief Reconciliation Act of 2001