Valuation Criteria for Enterprise Performance Measurement are indicators used in recent years in countries with the most developed capital market for performance measurement in the direction of maximizing shareholder’s value. A common feature of these indicators are:
- Use of opportunity costs, i.e. cost of capital (WACC)
- As a profit indicator operating economic result (NOPAT) is used
In practice, following indicators are the most often used:
- EVA - Economic Value Added - currently the most widely used
- CFROI - Cash Flow Return on Investment
- CROGA - Cash Return on Gross Assets
- MVA - Market Value Added
- RONA - Return On Net Assets
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