In the completely updated second edition of Foundations of Economic Value Added, James L. Grant provides a fresh look at the role of economic profit in the process of wealth creation. Whether you’re a manager seeking to create substantial shareholder value, or an investor looking for attractive stock selection opportunities, this comprehensive guide will help you better understand and implement one of the most useful financial tools currently available.
Filled with in-depth insights and practical advice, Foundations of Economic Value Added, Second Edition explores the pivotal role of EVA in the theory of finance and explains:
- How to measure EVA with standard accounting adjustments
- How to use EVA to value companies and their stock
- How to compare EVA with traditional financial metrics (such as ROE)
- How to estimate the EVA cost of capital
- How to use EVA to build actively-efficient portfolios
- How to use economic profit principles to identify wealth-creating firms, industries, and even market economies
Foundations of Economic Value Added, Second Edition shows how the EVA measure can be used as a prism to cast a revealing perspective on individual securities, portfolios, and even macro-economic valuations. If you want to stay up to date on the EVA revolution, this book is for you.
