RI = NI - equity charge
RI = NOPAT - $WACC = (Operating Margin - WACC) * Total Captial = EVA = EP
RI = Earnings per share - r*beginning book value per share
RI = (ROE - r) * beginning book value
EVA = NOPAT - $WACC = EP economic profit
MVA = NPV = Sum ( EP / (1+WACC)^t)
V = Bv + PV of all RI
V = Bv + (ROE - r)*Bv / (r-g) <== Also single-stage RI model
I am tripping now.
Edited 1 time(s). Last edit at Wednesday, June 1, 2011 at 09:33PM by pepp. |