NOT JUST A FORMULA

EVA=[(EBIT×(1−T))+Adjustments]−[(Equity+Debt−NIBCL)×(VE×ke+VD×kd(1−T))]

ECONOMIC VALUE ADDITION
(EVA)

BEYOND SPREAD SHEETS

EBIT 500

Tax Rate 0.3

NOPAT 350

Equity Capital 1000

Debt Capital 500

Non-Interest-Bearing Current Liabilities (NIBCL)100

Invested Capital (IC) 1400

Cost of Equity (Ke) 0.15

Cost of Debt (Kd) 0.1

Equity Value (E) 1000

Debt Value (D) 500

Total Value (V = E + D) 1 500

WACC 0. 133

Capital Charge 186.2

EVA 163.8

“An investment in knowledge pays the best interest.” – Benjamin Franklin

We go beyond profits. At Eva Advisory Services, we focus on true wealth creation through Economic Value Addition (EVA) — helping your business grow sustainably.”

Creating Value Beyond Numbers
At Eva Advisory Services, we don’t just look at profits—we look at what truly matters: the value your business creates. Our philosophy is rooted in the concept of Economic Value Addition (EVA), a powerful measure that goes beyond accounting profits to assess whether your business is genuinely building wealth.

Why EVA Matters
Every business invests money, time, and effort. EVA helps you answer the key question: “Are we creating real value, or just covering costs?” By factoring in the cost of capital, EVA reveals whether your company is delivering returns that justify the investment.

How We Help

Measure true performance by identifying where your business is creating or losing value.
Unlock opportunities by highlighting areas for growth, efficiency, and smarter investment.
Support decisions with clear insights that align strategy with long-term wealth creation.

Our Commitment
We believe that profit is temporary, but value is lasting. Through our consulting services, we ensure your business strategies, financial planning, and execution all contribute to sustainable growth—measured not just in rupees, but in real value addition.