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Economic Value Added (EVA) calculation

October 13, 2015

$WACC = WACC x invested capital

invested capital = net working capital + net fixed assets

OR

invested capital = book value of long term debt + book value of equity

EVA = EBIT(1 – tax) – $WACC

EBIT(1 – tax) aka NOPAT = Net Operating Profit After Tax

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From → Asset Valuation

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