Economic Value Added (EVA) Calculator
Calculate the Economic Value Added (EVA) of a company using EBIT, tax rate, WACC, and invested capital. Enter values for instant results.
Result Economic Value Added 0
Related Calculators: Adjusted Funds From Operations (AFFO) Calculator, After Tax Cost Of Debt (After-Tax COD) Calculator, Compound Interest Calculator, After Repair Value (ARV) Calculator, Altman Zscore (AZ) Calculator, Annualized Return Calculator, Appreciation Calculator, Asset Allocation Calculator: Find the Perfect Balance of Risk and Reward, Bond Current Yield (BCY) Calculator, Capital Asset Pricing Model (CAPM) Calculator,
Formula
Example
A company earns $500,000 in EBIT and faces a 30% tax rate. Its weighted average cost of capital (WACC) is 8%, and the invested capital is $2,000,000. After accounting for taxes and the cost of capital, the economic value added is $190,000.
Meaning
Economic Value Added (EVA) is a measure that calculates the difference between a company's net operating profit after taxes and its capital costs. It essentially measures how much value a company adds to shareholders' equity annually, making it an important metric for investors and businesses alike.
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