Residual Income (Economic Profit) Valuation Calculator

Value companies using the residual income model: intrinsic value = book value + PV of future economic profits (ROE - cost of equity) × book value. Also calculate Economic Value Added (EVA) and ROIC spread vs. WACC

Each component has a specific meaning:

• Residual income model: intrinsic value = book value + PV of future economic profits × book value — The residual income model: intrinsic value = book value + pv of future economic profits × book value recorded for the scenario being assessed.

Note: Interpret the residual income result against the thresholds and context described above.

Enter the residual income model: intrinsic value = book value + PV of future economic profits × book value for the scenario you are assessing. Value companies using the residual income model: intrinsic value = book value + PV of future economic profits (ROE - cost of equity) × book value. Also calculate Economic Value Added (EVA) and ROIC spread vs. WACC. Use the residual income result to inform your calculation.