Unlocking Value: New Indicator Boosts Company Performance and Attracts Investors
The added economic value is a key indicator used to measure how well a company is creating value. It looks at how much money the company is making compared to the cost of its borrowed capital and the return it gives to investors. By using this indicator, companies can see if they are earning enough to cover their costs and attract investors. The added economic value considers factors like operating costs, capital costs, and the cost of equity to determine how well a company is performing financially.