How are different industries affected with these problems?

• Industries with very cyclical investments (not smooth over the years) and/or industries with very long investment horizon suffer most from these pitfalls of EVA. This kind of industries are e.g.:
  • Telecom. forestry products, pharmaceuticals, semiconductors
• Industries with a lot of current (instead of fixed) assets and with short investment period should not be so worried about these pitfalls.
  • Because current assets represent a large amount of total assets, then also the value of assets is close to current value of capital tied into business
  • Short investment period does not give time for distortions
• This kind of branches are e.g.:
  • Personal computers, banking, food and beverages, retailing and publishing, consulting, engineering, constructing

Slide 9 of 11