How to Calculate EVA

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Performance Measurement > Forum > How to Calculate EVA

How to Calculate EVA
Malygin Vasily, Student (University), Russian Federation, Member
Another way to describe how to calculate EVA: Economic Value Added = NOPAT - Capital Charges or Economic Value Added = - ( Invested Capital * ) or Economic Value Added = Invested Capital * ( - ) (...) Read more? Sign up for free
 

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Calculating EVA Once Equity is Raised
Rahul Patil, Student (MBA), India, Member
We calculate EVA as NOPAT(%) - WACC. But once equity is raised cost of equity is out of picture. Is EVA still a good measure?
Another question is that we get EVA after deducting interest. So essentially we are removing the debt cost. And we are subtracting debt cost again in NOPAT - WACC. So shouldn't we be using EBIT - WACC?
 

         
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