Interdependence of Economic Value Added, Net Present Value and Market Value of a Company
Милорад Иванишевић
Abstract
Милорад Иванишевић
Abstract
Economic value added as a method for company performance measurement for time periods of one year is firstly analyzed in the paper. After that we discuss market value added as a di?erence between company market value and value of invested capital. Then the interdependence between economic value added and market value added is explained. Finally, we point out that there is relationship between net present value as a method for investment rentability evaluation and company market value.
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Economic value added as a method for company performance measurement for time periods of one year is firstly analyzed in the paper. After that we discuss market value added as a di?erence between company market value and value of invested capital. Then the interdependence between economic value added and market value added is explained. Finally, we point out that there is relationship between net present value as a method for investment rentability evaluation and company market value.
Key concepts: Market value added, Economic Value Added, Value (mathematics), Market value, Business value, Value added, Net asset value, Investment (military)