Economic value added as one of the methods of determining the company's value
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Valuation of an enterprise comprises all activities carried out in accordance with therules of the science and art of valuation, which lead to determination of its value at aspecified point in time in clearly specified economic conditions. The enterprise valuationmethods can be divided into three main groups: assets-based, income-based and mixedmethods. EVA’s basic advantage over other income-based methods is that it indicatesthe source of the added value in subsequent periods, i.e. the discrepancy between theobtained return on capital and its cost.
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