EVA: The Real Key to Creating Wealth – Book Recommendation

Book Description of book recommended in Becoming Your Own Banker by Nelson Nash on page 21.

Publication Date: October 21, 1998

Called “today’s hottest financial idea and getting hotter” by fortune magazine, Economic Value Added (EVA) is the topic of conversation in financial circles around the world, from Germany and Japan to Singapore and South Africa.

A revolutionary strategy for creating corporate and shareholder wealth that measures a company’s real profitability,  it has been adopted by such prominent corporations as Coca-Cola, Eli Lilly, and Siemens AG-with spectacular financial results.

Yet, despite its increasing visibility, most executives still only have a vague notion of what EVA is and what it can do for their company.

This groundbreaking book explains and clarifies all. Written by Al Ehrbar, a leading business journalist and senior vice president at EVA inventor Stern Stewart & Co., EVA: The Real Key to Creating Wealth provides a complete, accessible overview that examines how exactly EVA works, how it is measured, what it can do to structure incentives for employees, and why it is as potent as it is.

At its most basic, Economic Value Added is a measure of corporate performance that differs from most others by charging profit for the cost of all the capital a company employs, including equity.

To help translate principle into real-world practice, Ehrbar presents revealing case histories of EVA success stories, including those of Briggs & Stratton, the U.S. Postal Service, and Coca-Cola, which was catapulted from mediocrity   to the number one wealth creator in the world with the addition of EVA. An in-depth look at a breakthrough idea whose impact is being felt from corporate boardrooms to Wall Street, this indispensable book is must reading for business leaders looking to fully grasp-and profit from-“the real key to creating wealth.”




http://debtdiagnosis.com/2011/10/09/eva-defined-economic-value-added/   Password to this post is EVA. Jennifer@DebtDiagnosis.com


The Real Key to Creating Wealth

What if you could look at almost any business operation and see immediately whether it was becoming more valuable or less? What if you as an investor could use it to spot stocks that were far likelier than most to rise high? Rewarded by knockout results, managers and investors are peering into the hearts of what makes businesses valuable by using a tool called Economic Value Added.

Click to Download this PDF scanned from Fortune Magazine, September 1983.

May 6, 2013 · Jennifer · No Comments
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