It is mathematically the same as the difference between a firm’s return on capital and its weighted average cost of capital. Economic value added (EVA) is a measure of a company's financial performance based on the residual wealth calculated by deducting its cost … Widespread 2-Handle High-Arc Bathroom Faucet Trim Kit will add an upscale look to your bathroom. EVA Spread (EVA/Capital):Measures the EVA yield on capital. The basic formula is: Boasting a beautiful polished chrome finish that offers a highly-reflective look with a mirror-like shine, this faucet will accent any decor. Economic Value Added (EVA) The Economic Value Added (EVA) is a measure of surplus value created on an investment. This represents how much will be the company’s potential cash earnings without its capital cost. Widespread Featuring flowing curves, the Eva 8 in. The value of the firm will drop. ... For instance, in the example above, assume that the spread stays at 5% on all future projects but the cost of capital increases to 11% for these projects. A higher spread indicates greater business model productivity in turning capital into economic profit. It is important to deduct tax from the Operating Profit to arrive at the true operating inflow that a company will earn.NOPAT = Operating Income x (1 – Tax Rate).EVA Example for calculating Net Operating Income After Tax is as follows: EVA is net operating profit after taxes (or NOPAT) less a capital charge, the latter being the product of the cost of capital and the economic capital. Featuring flowing curves, the Eva 8 in.