EVA (Economic Value Add) is an established standard in measuring, analyzing, projecting, valuing, and discounting a firm’s underlying economic profit rather than its accounting profit and is superior to traditional measures of profit.
EVA, for economic value added, is an estimate of a firm’s true economic profit. EVA computes profit according to economic principles and taking into account managing a business by measuring its value against peer comparisons, and not simply following accounting conventions.
For a portfolio tear sheet demonstrating this concept complete the form above.
