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Economic value added

Economic value added Definition

In the field of finance, economic value added (or EVA) is a way to determine the value created for the shareholders of a company.

The basic formula is :

EVA = NOPAT - (NOA * WACC)

Where :

NOPAT = Net operating profit after taxes
NOA = Net operating assets
WACC = Weighted average cost of capital

RELATED TERMS
NOPAT




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