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Step 4: Calculate Company’s EVA
EVA = NOPAT - C * CCR
= 410.00 - 2,000.00 * 0.10
= 210.00
This company created an EVA of 210.
Note: this is the EVA calculation for one year. If a company calculates EVA e.g. for a quarterly report (3
months) then it should also calculate capital costs accordingly:
Capital costs for 3 months: 3/12 * 10% * 2,000 = 50
Capital costs for 4 months: 4/12 * 10% * 2,000 = 67
Capital costs for 6 months: 6/12 * 10% * 2,000 = 100
Capital costs for 9 months: 9/12 * 10% * 2,000 = 150
