Just read: ‘A new way to valuate companies’ at Fortune Magazine

This article starts off by highlighting the challenge that comes with focusing on certain metrics and then introduces a new potential metric that business owners or investors can use to measure the success of the business.

EVA momentum – A new way to valuate companies – Jan. 11, 2010.

In short, EVA momentum is a measurement of (are you ready for this?): The change in economic value added divided by the previous period’s sales.

Interesting! This is the first I’ve heard of this so I need to think about it. I’m not convinced it’s the panacea that someone mentioned in the article seems to think it is, but it is an interesting metric that deserves another look.

Published by Aaron Hoos

Aaron Hoos is a writer, strategist, and investor who builds and optimizes profitable sales funnels. He is the author of The Sales Funnel Bible and other books.

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