Does anyone have a good way of keeping these straight? Specifically, I am very confused on Economic Income:
I have EI = A-T OCF minus change in mkt val
EP = NOPAT - $WACC
MVA is NPV based on EP???
Does anyone have a good way of keeping these straight? Specifically, I am very confused on Economic Income:
I have EI = A-T OCF minus change in mkt val
EP = NOPAT - $WACC
MVA is NPV based on EP???
MVA is probably the most straightforward one. It’s the difference between total market value and book value of debt and equity.