Demonstration of value-based management tool on two actual cases. Example of using the economic value added (EVA) model for best practice decision-making.
Economic value added
The EBITDA is a well-known financial metric. It is considered as the best approximation of operating cash flows and thus consequently a crucial indicator for managers, bankers, appraisers, analysts and other industry practitioners. Read about the meaning and use of the EBITDA.
It is required from the valuation practitioners to truly understand the business, critically judge current performance and eventual future developments as well as the potential. The valuation process, the assumptions used and value generation truly need to be well thought through when valuing a company.