for company valuation or in a backward-looking manner to assess financial performance. Because a clear distinction usually is not made between the two views of these approaches and can hardly be found in the literature, we believe that our noting this distinction as illustrated in our example may be viewed as a valuable contribution.
The EVA approach can be adapted for either forward- or backward-looking measures, while some of the other approaches focus on one or the other. For example, discounted cash flow methods (not included here) focus only on valuation. Economic Profit, too