Eva: The Real Key to Creating Wealth

by Al Ehrbar

Book Overview

EVA ("economic value added" - wirtschaftliche Wertsch?pfung) ist eine Ma einheit zur Ermittlung des echten Finanzergebnisses eines Unternehmens und eine Strategie zur Schaffung von Unternehmens- und Aktion?rsverm?gen. Das EVA-Prinzip besagt, da ein Unternehmen kein Verm?gen schafft, solange es nicht in der Lage ist, Gewinne einzufahren, die h?her sind als die Kapitalkosten. EVA ist auch eine Methode, die Priorit?ten innerhalb eines Unternehmens so...

• Format: Hardcover
• Language: English
• ISBN: 0471298603
• ISBN13: 9780471298601
• Release Date: October 1998
• Publisher: Wiley
• Length: 256 Pages
• Weight: 1.15 lbs.
• Dimensions: 1.0" x 6.3" x 9.3"

Customer Reviews

Easy, simple, understandable to anyone

Al's book is a great collection of successfull EVA case studies. It is not intended to be "The EVA book" for financiers. It does what it is supposed to do: Give simple and powerfull examples on the concepts and applicability of EVA to real world companies. One of the strongest aspects of the book is to give examples of EVA implementation on a broad set of industries. The case of US Postal Service is especially powerfull.

Great Book for Deciding to Go Further

Ehrbar's book is criticized properly as a "sales brochure", but it also came in handy as a primer to the subject of EVA and as a tool to decide whether or not to tackle G. Bennet Stewart's tome "The Quest for Value". This book will either get you hooked on the concept, or will push you away. If you get hooked, Stewart's book rounds out the knowledge to implement. I believe that they have found the measurement that correlates the value of the business -- classically found through good cash flow analysis -- with management performance. EVA defines success if used properly.

A fresh look at management.

With EVA, Economic Value Added, Stern Stewart may well have found the Holy Grail of business management. By harnessing a more realistic view of the cost of capital to a singularly uncomplicated system of compensation to management aimed at the creation of shareholder wealth, EVA represents a kind of Grand Unified Theory of business success.Al Ehrbar has written an very elegant, lucid and readable explanation of EVA. Anyone involved in any business of any kind, either as owner, manager or investor, can only profit from reading this book.

The bottom line for managing your business.

This book gives managers a new way to look at their businesses, a way that benefits talented employees,company owners and yes, even customers! When businesses learn to evaluate all of their economic alternatives in terms of what their investments cost them, they can and will lower the delivered cost of product to their customers and create more wealth for their employees and owners at the same time. It is so refreshing to find someone who understands that rewarding talent in your organization benefits all stakeholders. As a strategic planning consultant, I recommend this book to all of my clients. EVA is THE PATHWAY to surviving and thriving in a globally competitive economy.

Ehrbar opens a new window on corporate performance

I worried that this was a tract for Stern Stewart but I was more than pleasantly surprised. Mr. Ehrbar conveys so much information with such lucidity and accessibility that one doesn't really miss a voice critical of EVA. The book forcefully conveys how much EVA differs from traditional ways of studying the performance of companies. Plainly for decades managers and investors have wasted tens of millions of hours and dollars in focusing on EPS to the exclusion of other metrics. This books opens up another way of studying business performance, and important one at that. Clearly financial reporting misses a lot when it dwells on the income statement with hardly a glance to the balance sheet and how one may affect the other. In all, this is a good book for any serious manager or investor trying to understand what distinguishes one company's performance from another's and how superior return on invested capital can be attained.