Bring EVA into the classroom with tools and data from EVA Dimensions
of the foremost EVA-based toolkit from EVA Dimensions allows you to pull down economic performance data for up to 9,000 global companies and measure and value them with the power of EVA -- right in the classroom. Use our tools and data to spice up your case studies with EVA insights, and supplement and stimulate your research activities. Whether you are involved with corporate performance management, business strategy or valuation and investment research, you will find significant value in our proprietary suite of services.
Our tools automatically convert reported financials into the EVA (economic value added) framework, transforming GAAP numbers into a rigorous computation of economic profit after deducting the full cost of capital and eliminating accounting distortions. The resulting figures are more inherently comparable across time and across sectors, and are more strongly linked to wealth creation in the stock market than conventional measures.
What’s more, our tools convert EVA into a series of new ratio measures and valuation methods. EVA Margin, which is EVA as a percent of sales, and EVA Momentum, which measures the EVA growth rate, are powerful new analytical constructs that enable you to trace performance to all key drivers spanning the income statement and balance sheet.
Our corporate and investor clients tell us they find the new EVA methods far simpler to understand and use and more informative than the DuPont ROI formula and discounted cash flow as means for measuring performance and analyzing value. Besides just measuring gains from profit margin improvements and faster asset turns, which is the concern of the DuPont formula, EVA Momentum also incorporates the added value from dynamic factors such as profitable growth and strategic retrenchment. And while the present value of future EVA is identical to NPV, EVA provides a period-by-period measure of performance that is missing from DCF analysis. Now you can judge for yourself the merits of making EVA a key component of your classroom discussion.
The new tools are variations on ones being used by major corporations to supercharge their financial planning and analysis, and by leading institutional investors to identify over- and under-valued companies. Now you can give your students and faculty cutting edge course-room applications such as the following:
Use the Excel-based Value Express and EVA Express to enrich case work for such things as financial statement analysis, goal setting and performance measurement.
Examine the parameters that define truly excellent or deteriorating performance, and see exactly how winning or losing strategies work through the income statement and balance sheet and culminate in an overall score of financial success or failure.
PRVit Express – our proprietary “performance-risk-valuation investment technology”-- provides a daily buy/sell percentile ranking of all Russell 3000 companies on the basis of their risk-adjusted EVA return on current market value. Use it as the first step in screening stocks and generating investing ideas, and put it to work in tandem with Value Express and EVA Express to provide an incredibly powerful suite of real world equity research tools for classes in investment management and for your investments clubs.
Are you looking for a way to accurately assess corporate performance and wealth creation for purpose of grading corporate strategies or screening key financial metrics? Then consider a subscription to our "EVA back-test file," We can furnish you access to comprehensive file of EVA metrics -- featuring EVA, Return on Capital, Cost of Capital, EVA Margin, EVA Momentum, and MVA (market value added), and many more -- covering the Russell 3000 US stocks or the Global 9000.
The EVA toolkit was developed by Bennett Stewart, the chairman of EVA Dimensions and the principal creator of EVA when he was a founding partner of Stern Stewart & Co. And now he and his team have customized EVA for the academic community -- and you can be among the first to sign up and be on the vanguard of bringing this practical corporate management and investment research methodology into your classroom and case work.
evaDimensions provides cost of capital calculations for over 15,000 companies globally on a historical basis. Based on our review of the literature, we have developed a composite approach that we think represents a practical, state-of-the-art method. The figure below depicts an overview of our cost of capital model. The model is divided into five main modules: the Cost of Equity Module, the Cost of Debt Module, the Industry Beta Module, the U.S. Cost of Capital Module, and the Global Cost of Capital Module.
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Contact us to learn more about the EVA academic program.