The economic value which the profit which is obtained from business activity (the operating profit after the tax deduction) from, pointed to the capital cost respectable amount which depends on dropping capital and pulled. Index of the enterprise finance which fixed period (shortly period) with produces return how much vis-a-vis the capital which it invests, measures high after the fact.

The profit which enterprise lifted (the operating profit after the tax deduction) from deducting all the capital costs, by the fact that it calculates rate of return, it grasps the economic value which that enterprise created. Because it assumes, that correlation with the stock price is high, the case of investment there is many a thing which is used as index. If this numerical value is high, exceeding high extent and capital cost, it comes to the point of producing added value, it means to bring many economic values to the shareholder. The calculation method of EVA is as follows.

EVA = (operating profit after the tax deduction) - (dropping capital × weighted mean capital cost)

The operating profit after the tax deduction, all you sell and pour expense tax and the like from the amount and pulling it is something which is effective, it is the numerical value which totals the carryover profit and this term profit. Capital cost, it points to debt capital such as capital stock and loan and interest of stock and the dividends etc.. Because ratio of two capital composition differs depending upon enterprise, it divides proportionally cost in order to obtain accurate capital cost. This is called weighted mean capital cost.