This economic value added (EVA) excel template can help analysts and investors assess a company's profitability. Economic value added (EVA) or economic profit is a measure of a company's profitability based on the residual income technique. EVA is calculated based on the idea that real profitability is realized when additional wealth is created for shareholders and that projects should generate returns above their cost of capital (WACC). The formula for calculating EVA is similar to that for determining residual income and is as follows: EVA = NOPAT - (WACC x Capital Invested) Where: NOPAT = Net Operating Profits After Tax WACC = Weighted Average Cost of Capital Capital Invested = Equity + Long-Term Debt at the Beginning of Period * WACC x Capital Invested is also known as finance charge. If you’d like to see more examples beyond this economic value added (EVA) excel template, be sure to look at all the Valuation templates on CFI Marketplace.