Overview
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.  
Share
Reviews Add a review
No reviews yet

More From Corporate Finance Institute®

Browse our top rated business templates. See All
Financial Institution Dividend Discount Model
431
0
The financial institution dividend discount model uses future dividends to find the implied share price. This model is based on…
Loan Payment Calculator
278
0
The loan payment calculator allows users to determine the principal and interest payment each month until the full balance of…
DDM - Excel Dividend Discount Model Template
342
28
The dividend discount model template allows investors to value a company base on future dividend payments. This is based on…
Non-directional trading strategy template Non-directional Trading Strategies Template
340
0
The non-directional trading strategies template allow users to determine the profit when buying options. This template focuses on non-directional strategies…
restructuring financial model template preview 1 Restructuring Financial Model Template
566
0
This restructuring financial model template is used to demonstrate the financial interactions behind the restructuring process. Adjust this model to…
TMT Financial Model Template Preview TMT Financial Model Template
749
0
This TMT financial model template is used to value technology, media, and telecom firms. This model provides a template to…