Economic Value Added EVA Explained with Examples   Essentials of Investments
Channel: Farhat Lectures. The # 1 CPA & Accounting Courses
Date: 2020-10-30

Economic value added (EVA) is a measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit, adjusted for taxes on a cash basis. In corporate finance, as part of fundamental analysis, economic value added is an estimate of a firm's economic profit, or the value created in excess of the required return of the company's shareholders.

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