value
creation for shareholders
the Economic
Value Added (EVA) : a static approach of the
value creation
EVA =
[ ROA - WACC
] . ASSET
To learn
more about EVA, CLICK
HERE
The Net
present Value (NPV) : a dynamic approach of
the value creation
To learn
more about NPV,
CLICK HERE
CF1 : level of cash flows coming from Operations, Marketing, Human Resources, Real Estate, etc
CFO : Strategic Decisions (Allocation of initial tangibles & intangibles resources)
N : Life Cycle
WACC : Risk & Required Return
Bernard Jaquier,
Professor in Economics and Finance, Ecole
Hôtelière de Lausanne, Switzerland,
2007
