Calculating EVA for a Proprietary Company

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Economic Value Added > Forum > Calculating EVA for a Proprietary Company

Calculating EVA for a Proprietary Company
Sonal
EVA can be easily calculated when the organisation is Public Limited. But it is difficult to calculate EVA of a proprietary company as the cost of equity does not exist. Please advise me.
 

 
EVA for Proprietary Concern
Nilesh Borde
EVA is an important concept for a company form of business organisation. Calculating EVA for proprietary concern is a futile and immaterial activity.
 

 
EVA for Private Entities
Siva, Student (MBA), Singapore, Member
Hi Sonal, in the case of the proprietary company you mentioned, is it possible to calculate with the rate of returns expectations of the stakeholders? The returns generated by public companies in similar businesses can act as a pointer.
It will be a good exercise, as all businesses should perform activities which add economic value for their survival, be it public or private.
 

 
EVA is for Any Type of Entities
Mehul Doshi , CxO / Board, India, SIG Leader
EVA is a eye opener be it for proprietor or owner or directors or organization entities as it enables them to gauge the planned versus the expected business life cycle of the organization. Stop making losses is something businesses need to learn and EVA gives a good metric on decision making and risk ability for investor who can be in personnel, organization or financial metric.
 

     
Special Interest Group Leader
Mehul Doshi
CxO / Board

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