What Does Economic Value Added Mean?

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What does Economic Value Added mean? Read on to discover the definition & meaning of the term Economic Value Added - to help you better understand the language used in insurance policies.

Economic Value Added

Economic Value Added

A corporate performance measure that stresses the ability to achieve returns above the firm's cost of capital. It is often stated as net operating profits after tax, less the product of required capital, times the firm's weighted average cost of capital.

We hope the you have a better understanding of the meaning of Economic Value Added.

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