Stewart Best-Practice EVA

The Definitive Guide to Measuring and Maximizing Shareholder Value
1. Auflage 2013
ISBN: 978-1-118-64529-1
Verlag: John Wiley & Sons
Format: PDF
Kopierschutz: Adobe DRM (»Systemvoraussetzungen)

E-Book, Englisch, 352 Seiten, E-Book

Reihe: Wiley Finance Editions

Best-Practice EVA tells the new EVA story from the ground up.Stewart covers EVA essentials--the classic economic profitversion of EVA--in the first three chapters of the book. Heshows readers how simple and intuitive EVA really is, how it isdefined, and why it is better than all other measures of corporateprofit. You discover how it naturally guides managers into makingall the right decisions--the ones that will truly maximizevalue. You see how to use it in profit-sharing bonus plans thatcreate the powerful incentives of an owner. Later, Stewartintroduces new ratios that make EVA much more powerful and mucheasier to use than ever before. The pinnacle of the new ratioframework is EVA Momentum, calculated by taking the change in EVAversus the prior period, and dividing by the revenues in the priorperiod. It measures the growth rate in EVA, scaled to the salessize of the business. It is the only corporate performance ratiowhere bigger always is better, because it gets bigger when EVAdoes, which means it should be every company's most importantfinancial goal, the one ratio metric that everyone aims to maximizeas the key measure of corporate success. Stewart then walks throughthe nuts and bolts of Best-Practice EVA, kicking off with anin-depth look at EVA Margin, or EVA as a percent of sales.It's a key productivity metric, and Stewart's candidateto replace ROI. The last link in the Best-Practice program isPRVit--the EVA market score report. Stewart shows how to readand interpret the report, how the score is determined, and whyinvestors are turning to it to screen and rate stocks. He alsoshows why it is finding a home with CFOs and IR directors who wantinsights into how the market is pricing their stock. The bookconcludes with battle-tested tips from the firing line, practicalsuggestions for how you can test drive and adopt Best-Practice EVAat your company.

Autoren/Hrsg.

Stewart, Bennett

Inhaltsverzeichnis

Preface ix
CHAPTER 1 EVA 101 1
CHAPTER 2 EVA and Value 19
CHAPTER 3 Accounting for Value 47
CHAPTER 4 What's Wrong with RONA? 85
CHAPTER 5 The New EVA Ratio Metrics 99
CHAPTER 6 EVA Margin 123
CHAPTER 7 Setting EVA Targets 157
CHAPTER 8 Put Momentum into Planning 191
CHAPTER 9 Dividing Multiples into Good and Bad 217
CHAPTER 10 Put EVA into Capital Decisions and Acquisitions223
CHAPTER 11 EVA and the Buy Side 245
CHAPTER 12 Become a Best-Practice EVA Company 273
APPENDIX A The Best-Practice EVA Software Toolkit 287
APPENDIX B Corrective Accounting Adjustments 291
APPENDIX C Accounting for Corporate Charges in Detail 295
Glossary 299
About the Author 313
Index 315

Über Autor(innen)

G. Bennett Stewart III is chairman and chief executive ofEVA Dimensions LLC, a financial technology firm that providessoftware, data, and training and support programs to enable itscorporate clients to test and implement Best-Practice EVA. The firmalso offers EVA-based equity research services to helpinstitutional fund managers make better informed buy-sell decisionsand generate excess returns. Mr. Stewart was a founding partner ofStern Stewart & Co., the EVA consulting firm, from 1982 to2006. He left to form EVA Dimensions by acquiring assets from SternStewart, including the EVA trademark for those assets. Mr.Stewart's other book is The Quest for Value (1991), whichhas been described as "the definitive management guide to EVA." Aglobally recognized expert in the field of value-based performancemanagement, incentive compensation, and accounting for value, he isa frequent speaker and author of articles on topics in thosefields.