Economic Value Added (EVA) vs Cost of Capital Discounted Cash Flow (DCF) Valuation

Tool for reconciling EVA and DCF valuation models


The user must define the following inputs:
- Growth rate in revenues for the next 5 years
- All operating expenses as a % of revenues in the fifth year
- Debt do you plan to use in financing investments
- Growth rate in capital expenditures & depreciation
- Working capital as a percent of revenues
- Tax rate that you have on corporate income
- Beta do you use to calculate cost of equity
- Current long term bond rate
- Market risk premium you want to use
- Cost of borrowing money

Note: this model is being shared with the authorization of Professor Aswath Damodaran from NYU Stern Business School (

This business tool includes
1 Excel model

Prof. Aswath Damodaran offers you this business tool for free!

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Further information

- Estimated cashflows
- Cost of equity and capital
- Firm valuation


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