Economic Book Value Details Dataset
Economic Book Value provides a better measure of "book" value. It is a cash flow-based measure of the no-growth value of a business. The basic formula is below.
NOPAT (Net Operating Profit After Tax)
/ Weighted Average Cost of Capital (WACC)
+ Excess Cash
+ Net Assets from Discontinued Operations
+ Fair Value of Unconsolidated Subsidiary Assets (non-operating)
+ Net Deferred Tax Liability
+ Net Deferred Compensation Assets
- Fair Value of Total Debt
- Fair Value of Preferred Capital
- Fair Value of Minority Interests
- Value of Outstanding ESO After-Tax
+ Pensions Net Funded Status
= Economic Book Value (EBV)