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EVA and the market value of a company
If the company produces a return that is equal to capital costs (equal to investors discount rate). Then the market
value of company will equal the book value of equity (no premium or discount)
I.e. when EVA = 0, then company´s market value of equity equals its book value of equity.
The market value of a company =
Book value of equity + present value of future EVA
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