Unlocking Company Value: Economic Value Added Method Revolutionizes Performance Metrics
The main goal of the article is to show how the Economic Value Added method can be used to determine a company's value. The researchers analyzed different financial indicators and found that Economic Value Added is a more suitable method for assessing value creation. They discovered that value is created when a company generates revenue greater than the economic cost of that revenue. This method helps evaluate economic profit, management decisions, and the contribution of different business units to value creation. Ultimately, Economic Value Added accurately reflects a company's ability to create value and ensure its growth and development.