Value management

One of the most important goals for EVN’s management is to realise a long-term increase in operating value added. EVN measures this performance indicator based on Economic Value Added (EVA^®), which compares net profit after tax with the weighted average cost of capital employed. Since this calculation neutralises the cost of capital, it highlights the actual operating value added by a company.

EVA^® is calculated by multiplying the difference between the return on capital employed (ROCE) and the weighted average cost of capital (WACC) by the average capital employed.