Term
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Definition
C + X/ (1 + rf)T = S0 + P
C = cost of call
X = face value of bond
S0= cost of stock
P = cost of put |
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Term
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Definition
Method #1
EVA = NOPLAT - Capital Charge
where capital charge = IC x WACC
Method #2
EVA = (ROIC - WACC) x IC
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Term
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Definition
EVA Momentum =
(EVAt - EVAt-1) / Salest-1 |
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Term
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Definition
EVA / Sales
The percentage of sales after all operating expenses and capital charges |
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Term
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Definition
[Sales growth rate] x [EVA margin]
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Term
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Definition
Market Value Added:
the spread between the company's market value and the capital employed on its balance sheet |
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Term
Invested Capital
(operating approach) |
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Definition
| IC = net operating working capital + net PPE + capitalized operating leases + other operating assets - operating intangibles - other operating liabilities - cumulative adjustment for amortization of R&D |
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