Economic Value Added Calculator

In corporate finance, Economic Value Added (EVA) is an estimate of a firm's economic profit, or the value created in excess of the required return of the company's shareholders.

The Economic Value Added (EVA) equal to:

EVA = EBIT × (1-T) – WACC × Total Capital

Where:

EBIT = Earnings Before Interest and Taxes

T = Tax Rate

WACC = Weighted Average Cost of Capital

Total Capital = Total Assets

For example, if EBIT = 250,000 ; T = 25% ; WACC = 10%; Total Capital = 1,000,000;

The EVA equals 87,500, which means that the firm had created a wealth of 87,500 dollars to it's share holders

(EVA = 250,000 × (1-0.25) – 0.1 × 1,000,000)



Dollars

%

%

Dollars





Contact Form

Do you have questions or comments for us? We'd love to hear them! Fill out the form and one of the calculators team will get back to you as soon as possible.

JoomShaper