If the relation in expression (6) holds value as a pedagogical tool, then it should also be useful in practice. In fact, the relation in expression (6) is precisely what lies behind the Stem-Stewart Economic Value Added (EVA) valuation technique, which is rapidly gaining acceptance in prac tice (see Stewart 1991, especially Chapter 8). Of course, the valuations produced under the EVA approach must in principle be equal to those based on the discounted dividend formula. However, the approach frames the valuation exercise in a different way, one that Stewart (1991) argues is more useful for thinking about a business's "value drivers."