Journal Article10.2139/SSRN.296061
Financial Value Added
TL;DR: In this article, the authors compare EVA with Net Present Value and examine the breakeven point in both measures and propose and develop a new measure, the Financial Value Added, which attempts to reflect the virtues of EVA while aiming for a perfect alignment of outcomes with the net present value.
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Abstract: The search for measures or criteria to determine the economic and financial performance of a company is ever present in the scientific and professional realm. In recent years there has been, in our opinion, a new element introduced into the equation which is the desire of the giant international consulting firms to market their products. In many cases they design products which are little more than a return to fundamentals. In this paper we will analyse one of these measures, the EVA or Economic Value Added. We will compare it with Net Present Value and examine the breakeven point in both measures, moreover, we will propose and develop a new measure, the Financial Value Added, which attempts to reflect the virtues of EVA while aiming for a perfect alignment of outcomes with the Net Present Value.
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Citations
Measurement of value creation: economic value added and net present value
TL;DR: In this article, the two most basic approaches, economic value added (EVA) and discounted cash flow (DCF) techniques, are used to measure value creation of companies, which are consistent with the maximization of the value of the company.
Analisis Perbandingan Kinerja Perusahaan Telekomunikasi dengan Menggunakan EVA, REVA, FVA, dan MVA
Abu Bakar
- 01 Jan 2010
TL;DR: In this paper, the authors measured the financial performance of five telecommunications companies using the measurement method based on value added approach, in four consecutive period, and the results suggest significant difference for each period.
Analysis of Financial Performance with Economic Value Added (EVA) Method, Market Value Added (MVA), And Financial Value Added (FVA)
Rahmah Arafati Masyiyan,Deannes Isynuwardhana +1 more
- 17 Apr 2020
TL;DR: In this paper, the authors used EVA, MVA, and FVA analysis techniques to see a better and more efficient financial performance of coal subsector mining companies in Indonesia.
ANALISIS ECONOMIC VALUE ADDED (EVA) DAN FINANCIAL VALUE ADDED (FVA) SEBAGAI SALAH SATU ALAT UKUR KINERJA KEUANGAN PERUSAHAAN (Studi pada PT. Panca Mitra Multiperdana Periode 2010-2014)
Ismi Wenda Hidayati
- 26 Aug 2015
TL;DR: In this article, an exportir company, PT. Panca Mitra Multiperdana (PT. PMMP), was investigated using a quantitative approach to find out company's financial performance with EVA and FVA methods.
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La orientación de la actividad aseguradora de vida hacia la creación de valor
Luis Otero González,Sara Fernández López,Alfonso Rodríguez Sandiás +2 more
- 01 Jan 2003
TL;DR: In this article, the authors analyze the ALM strategies focused to make profits in the insurance ac- tivity and expose the cash flow projections particularities and then they review two funda- mental strategies: Embedded value (EV) and Economic Value Added (EVA).
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References
Free cash flow (fcf), economic value added (eva™), and net present value (npv):. a reconciliation of variations of discounted-cash-flow (dcf) valuation
TL;DR: In this paper, the relationship between free-cash-flow and economic value added (EVA) concepts is discussed, and the equivalence between EVA and NPV is shown to be mathematically equivalent to the discounting of appropriately defined economic profits.