Author Topic: Extrapolations in EVA model  (Read 209 times)

tol1

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Extrapolations in EVA model
« on: September 07, 2018, 06:19:19 AM »
Am not a big fan of "forecasting" beyond 5+ years, but looking at a usual EVA valuation.

How do you guys usually derive invested capital, nopat etc for the long-term? Do you assume ROIC will stay constant or do you let IC / nopat grow at certain rates?

Keen to hear your thoughts on above.

Thanks