Valuation Criteria for Enterprise Performance Measurement

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