Features
- Cover Type: Hard Cover with 324 pages
- Published by: Wiley
- Edition: 2nd Edition September 10, 2002
- Written in: English
- ISBN 10 Number: 0471234834
- ISBN 13 Number: 978-0471234838
-
Book Dimensions:
8.9 x 6.3 x 1.1 inches
- Weighs: 1.3 pounds
Product Description
An updated look at the role of economic profit analysis in the process of wealth creation
Grant explains the pivotal role of economic value added (EVA) in the theory of finance, how to measure EVA with standard accounting adjustments, how to use EVA to value companies and their stock, and how to use economic profit principles to identify wealth-creating firms, industries, and even market economies.
Back Cover Copy
In the completely updated second edition of Foundations of Economic Value Added, James L. Grant provides a fresh look at the role of economic profit in the process of wealth creation. Whether youre a manager seeking to create substantial shareholder value, or an investor looking for attractive stock selection opportunities, this comprehensive guide will help you better understand and implement one of the most useful financial tools currently available.
Filled with in-depth insights and practical advice, Foundations of Economic Value Added, Second Edition explores the pivotal role of EVA in the theory of finance and explains:
- How to measure EVA with standard accounting adjustments
- How to use EVA to value companies and their stock
- How to compare EVA with traditional financial metrics (such as ROE)
- How to estimate the EVA cost of capital
- How to use EVA to build actively-efficient portfolios
- How to use economic profit principles to identify wealth-creating firms, industries, and even market economies
Foundations of Economic Value Added, Second Edition shows how the EVA measure can be used as a prism to cast a revealing perspective on individual securities, portfolios, and even macro-economic valuations. If you want to stay up to date on the EVA revolution, this book is for you.
Reader ReviewsI took a few courses with Professor Grant at the University of Massachusetts Boston, where this was one of the required texts. I must say his courses and his texts has turned out to be most valuable and useful during my final years as a student of undergraduate finance. All of his texts were reader-friendly and insightful. Dr. Grant uses active companies in the stock market (GE, Dell, IBM) and their historical data to determine whether they are creating or destroying wealth for their shareholders and bondholders using value-based metrics like eva. His calculations in this book were especially easy to follow and understand - students of finance can relate with me if you have read some of those cryptic finance texts. I would highly recommend Dr. Grant's text to all students. And if you are a UMass Boston student, you should take his course.
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