Free Cash Flow (FCF), Economic Value Added (EVA ), And Net Present Value(NPV): A Reconciliation Of Variations Of Discounted-Cash-Flow (DCF) Valuation
- Topics:
- Strategic Management Tools
- Tags:
- Economic Value Added,
- Economic Value-Added Analysis,
- Finance,
- Managerial Accounting,
- University Of Tennessee,
- Valuation
- Source:
- University of Tennessee
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Overview: Cash flows consist of the cash coming into the organization through the activities of operations and financing. It also contains the cash going out of the organization through the investing activity. Economic Value Added (EVA) is the monetary value of an entity at the end of a time period minus the monetary value of that same entity at the beginning of that time period. EVA is a tool that measures how much more valuable a company has become during a given time period. The paper examines the Discounted Cash Flow method of valuation and in the process, explores the relationship between free cash flow and EVA concepts.
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Format: PDF | Size: 87KB | Date: Jun 2000 | Pages: 17





