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 strategic execution asset 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 this asset covers
This is a preview of the full deliverable. Inside the Stratenity Library, this asset walks your team 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