Economic Value Added (EVA) vs Cost of Capital Discounted Cash Flow (DCF) Valuation Excel Model
Originally published: 11/07/2016 13:07
Last version published: 02/02/2018 14:49
Publication number: ELQ-14221-2
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Economic Value Added (EVA) vs Cost of Capital Discounted Cash Flow (DCF) Valuation Excel Model

Excel Tool for reconciling EVA (Economic Value Added) and DCF (Discounted Cash Flow) valuation models

Description
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

- Prof. Aswath Damodaran

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Further information

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


4.8 / 5 (50 votes)

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