EVA

Economic value added. Can be calculated as nopat x (capital x r) where nopat is the Net Operating Profit after Taxes and r is an appropiate rate for the opportunity cost of capital.

Similar financial terms

Irrelevance result
A proposition by Modigliani and Miller which states that a firm cannot change the total value of its outstanding securities by changing its capital structure proportions.

Revaluation
An increase in the foreign exchange value of a currency that is pegged to other currencies or gold.

Performance evaluation
The evaluation of a manager's performance which involves, first, determining whether the money manager added value by outperforming the established benchmark (performance measurement) and, second, determining how the money manager achieved the calculated return (performance attribution analysis).

Beggar-thy-neighbor devaluation
A devaluation that is designed to cheapen a nation's currency and thereby increase its exports at other countries' expense and reduce imports. Such devaluations often lead to trade wars.

Terminal Elevator
An elevator located at a point of greatest accumulation in the movement of agricultural products which stores the commodity or moves it to processors.

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Volatility risk

The risk in the value of options portfolios due to the unpredictable changes in the volatility of the underlying asset.


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