Training | EVA

EVA® is much more than just a measure of profits.

EVA® is much more than just a measure of profits.

Used to its fullest, Economic Value Added (EVA) is an integrated framework for financial management and incentive compensation that transforms a company’s culture and its performance. More importantly, EVA really works.

EVA measures the wealth a company creates (or destroys) each year. It is a company’s after-tax profit from operations minus a charge for the cost of all capital employed to produce those profits – not just the cost of debt, but the cost of equity as well.

But EVA is much more than just a different way of measuring profits. We developed EVA as the cornerstone of a financial management and incentive compensation system that changes not only how executives view their company, but how they manage it. And independent evidence proves that EVA brings dramatic performance improvements.

Our research shows that our clients who have adopted Value Management systems have outperformed the global market by more than 200% in the last 10 years, in terms of Total Shareholder Returns.

In a one-day EVA® seminar for senior managers, Stern Value Management explains how public and private companies use EVA to measure their progress, motivate their people, and increase shareholder value.

 

We don't just change numbers. We change behavior.

We don’t just change numbers. We change behavior.

Traditional financial measures – including ROI, EPS, and even cash flow – often mask a company’s true performance. EVA allows managers to clearly see whether their returns are greater than the cost of capital and focus their efforts on the opportunities with the greatest payoffs.

In Stern Value Management’s intensive all-day EVA workshop, you will learn the concepts that helped hundreds of companies around the world achieve superior returns for their shareholders. The one-day session covers the fundamentals of EVA, including:

  • The definition of Economic Value Added
  • Who uses EVA and why
  • Why EVA is superior to all other financial measures, including EPS, ROI and free cash flow
  • How EVA drives shareholder wealth
  • How to increase EVA
  • The right way to link EVA to incentive compensation
  • How to successfully implement EVA in your company

In addition, we will provide case studies to illustrate how EVA-guided strategies have time and again resulted in improved performance and higher stock prices.

Join us and learn how your company can use EVA to focus its direction, change its business culture and boost its stock price or fair market value. Seminars are offered at various times and locations during the year, and can be customized for your company and management team. For more information, and/or to inquire about a seminar, call (+1) 212-261-0600 or write to info@sternvaluemanagement.com.

Our company pioneered EVA® and Value Management. Who better to show you why it works and how to use it?