Foundations of Economic Value Added, 2nd Edition

Filled with in-depth insights and practical advice, Foundations of Economic Value Added, Second Edition explores the pivotal role of EVA in the theory of finance and explains:

• How to measure EVA with standard accounting adjustments
• How to use EVA to value companies and their stock
• How to compare EVA with traditional financial metrics (such as ROE)
• How to estimate the EVA cost of capital
• How to use EVA to build actively-efficient portfolios
• How to use economic profit principles to identify wealth-creating firms, industries, and even market economies

Foundations of Economic Value Added, Second Edition shows how the EVA measure can be used as a prism to cast a revealing perspective on individual securities, portfolios, and even macro-economic valuations. If you want to stay up to date on the EVA revolution, this book is for you.

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All Customer Reviews
Average Customer Review:
4 of 4 people found the following review helpful:

Go beyond earnings, and into value-based metrics, 2004-12-05
I took a few courses with Professor Grant at the University of Massachusetts Boston, where this was one of the required texts. I must say his courses and his texts has turned out to be most valuable and useful during my final years as a student of undergraduate finance. All of his texts were reader-friendly and insightful.
Dr. Grant uses active companies in the stock market (GE, Dell, IBM) and their historical data to determine whether they are creating or destroying wealth for their shareholders and bondholders using value-based metrics like eva.
His calculations in this book were especially easy to follow and understand - students of finance can relate with me if you have read some of those cryptic finance texts.
I would highly recommend Dr. Grant's text to all students. And if you are a UMass Boston student, you should take his course.


36 of 38 people found the following review helpful:

This book provides readers with an independent view on EVA, 1999-01-30
As a portfolio manager with a major NYC investment firm, it was refreshing to see Professor Grant drill down to the core concepts of EVA and its impact on market pricing. Everyone acknowledges that Stern Stewart has pushed EVA thinking forward in the corporate world but Professor Grant takes it further and shows how EVA gets priced into securities on a day-to-day basis.

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