This Value Added Template is an useful tool to calculate the important concept of Value Added both in economic terms as well as in gross terms. Value added is the extra value that is created from the operations of a business. One way to calculate the Gross Value Added (GVA) is by using the Value Added Statement (VAS). It can be used as a valuation metric to calculate how well a business is creating value. Economic Value Added (EVA) can be calculated as:

EVA = NOPAT – (CE* WACC)

Where:

CE – Capital Employed

WACC – Weighted Average Cost of Capital