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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Economic Value Added - EVA  

Definition 1.

A measure of a company's financial performance based on the residual wealth calculated by deducting cost of capital from its operating profit (adjusted for taxes on a cash basis). The formula for calculating EVA is as follows: = Net Operating Profit After Taxes (NOPAT) - (Capital * Cost of Capital)
 
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