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Business valuation

This topic has 3 replies, 2 voices, and was last updated 10 years ago by John Moffat.

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April 28, 2014 at 12:21 pm #166574
fhamoud
Member
- Topics: 5
- Replies: 10
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
April 28, 2014 at 4:19 pm #166624
John Moffat
Keymaster
- Topics: 57
- Replies: 54628
It is the second!
EVA is a measure of the value added 🙂
April 28, 2014 at 4:44 pm #166639
fhamoud
Member
- Topics: 5
- Replies: 10
Thank you
April 28, 2014 at 4:47 pm #166640
John Moffat
Keymaster
- Topics: 57
- Replies: 54628
You are welcome 🙂
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