|
Sonal, India
|
Calculating EVA for a Proprietary Company
EVA can be easily calculated when the organisation is Public Limited. But it is difficult to calculate EVA of a proprietary company as the cost of equity does not exist. Please advise me.
X
Sign up for free
Welcome to the Performance Measurement best practices of 12manage.
Here we exchange knowledge and experiences in the field of Performance Measurement.
❗Sign up now to gain access to 12manage. Completely free.
X
Continue for free
Please sign up and login to continue reading.
Here we exchange knowledge and experiences in the field of Performance Measurement.
❗Sign up now to gain access to 12manage. Completely free.
| |
|
|
| |
|
Nilesh Borde, India
|
|
EVA for Proprietary Concern EVA is an important concept for a company form of business organisation. Calculating EVA for proprietary concern is a futile and immaterial activity.
|
| |
|
Siva
Student (MBA), Singapore
|
|
EVA for Private Entities Hi Sonal, in the case of the proprietary company you mentioned, is it possible to calculate with the rate of returns expectations of the stakeholders? The returns generated by public companies in similar businesses can act as a pointer.
It will be a good exercise, as all businesses should perform activities which add economic value for their survival, be it public or private.
|
| |
|
Mehul Doshi
CxO / Board, India
|
|
EVA is for Any Type of Entities EVA is a eye opener be it for proprietor or owner or directors or organization entities as it enables them to gauge the planned versus the expected business life cycle of the organization. Stop making losses is something businesses need to learn and EVA gives a good metric on decision making and risk ability for investor who can be in personnel, organization or financial metric.
|
|
|
|
|
More on Performance Measurement
|
|
|
Log in
Comments by date▼