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Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › Business valuation
Economic value added (EVA) is one of method using to evaluate value of the business. However, I want through two different resource where I found two different answers on how to calculate value of the firm using EVA
1. Value of the firm = Present value of EVA
2. Value of the firm = Present value of EVA + Capital employed
Please advise which is correct answer
Thanking you
It is the second!
EVA is a measure of the value added 🙂
Thank you
You are welcome 🙂