Boardroom Apps

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Quick EVA Valuation & Target Assessment
The following model can help you assess a likely value of your equity today and
where it could potentially be if you managed to change your key performance indicators in the future.

Please use it as a tool that will give you a high level indication only of the areas to focus your business in order to meet certain future value expectations.

How to

01

Enter Present Data

Please enter normalized rounded corporate performance data to calculate sustainable return on capital employed (ROCE) and simplified weighted average cost of capital (WACC) and to return an indication of present economic value added (EVA) and present value of equity.

02

Indicative Targets @EVA = 0

In this table you will find the individual targets, the meeting of which would return EVA equal to 0, and therefore the indicative value of the equity equal to its book value. Please note that these indicative targets shall be applied distinctively to return EVA =0, not concurrently.

03

Enter Future Assumptions

Enter one indicative target from the Indicative target list at the time or a pool of assumptions to see a possible impact on the future EVA and the indicative value of equity.

04

Pro forma Financials

Pro forma Financials will display a summary of the numbers based on the data entered.

05

Indicative Valuation

Indicative Valuation will return EVA, value of the company and its equity based on the data entered. Please note that we consider value of the debt to remain at its book value therefore disregarding its value in severe distressed situations.

06

Indicative Return on Equity

Indicative Return on Equity returns RoE per annum taking into consideration data entered and the number of periods between Present and Future, either without or with likely distributed dividends, calculated on the basis of likely free cash flow for a given period.

07

Management Goals

Management Goals displays summary of management targets to focus on if the future valuation as returned in 05 Indicative Valuation is to be achieved.

08

Please Beware

This is a quick generic model only that does not cover all aspects of valuation. Given its mathematical construct, it may under certain number combinations return non meaningful results.

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