Executive summary

EVA measures the profit a business earns above the cost of all the capital it uses, so positive EVA means true value creation. This is the Economic Value Added (EVA) from the Stratenity Library, a governed consulting deliverable that is already built for you. It gives your team the full working method for economic value added, and it walks through everything from computing nopat: stripping the p and l down to operations to divisional eva: pushing the charge to where decisions are made. Every asset ships with a worked client example, a clear RACI, defined KPIs, and governance you can defend, so your team adapts it to a live client engagement instead of starting from a blank page.

What is inside

What this asset covers

This is a preview of the full deliverable. Inside the Stratenity Library, this asset walks a consultant through the complete method, section by section, with a worked client example threaded throughout.

  • Profit Is an Opinion About Revenue; Value Is a Verdict on Capital
  • The EVA Equation and the Meaning of the Capital Charge
  • Computing NOPAT: Stripping the P and L Down to Operations
  • Defining Invested Capital: What the Business Actually Ties Up
  • The WACC Input: One Defensible Hurdle, Not a Negotiation
  • The Standard Adjustments: A Long Menu, a Short List That Matters
  • Divisional EVA: Pushing the Charge to Where Decisions Are Made
  • The EVA Driver Tree: From One Number to a Hundred Levers
  • EVA, ROIC, and Residual Income: Choosing Among Cousins
  • EVA-Linked Incentives: Paying for Value, Banking the Proof
  • Steering Capital Allocation: EVA as the Group's Operating System
  • Pitfalls: How EVA Programmes Fail and How to Prevent It
  • The Deliverable: The EVA Book, the Scorecards, and the Operating Cadence
How to use it

Review, download, and activate in 48 hours

Stratenity Library subscribers can review this asset in full, download it, and activate it into a governed, client-ready deliverable in 48 hours rather than weeks. Each asset ships with a worked client example, a clear RACI, defined KPIs, and governance you can defend.

Read the full asset on the Stratenity Library › Not a member yet? Start a free trial to unlock and activate it, or sign in if you already have an account.