Explain what EVA Momentum measures.

a. Explain what EVA Momentum measures. Define the two underlying drivers of EVA Momentum. b. Identify the source of Amazon’s EVA Momentum over the previous 1-year and 5-year horizons. c. Using Figure 5A.32 as a guide, calculate the EVA Momentum that Amazon would have achieved in 2012 if its sales growth was only 13.5% and its EVA Margin held steady at 2.52%. Would this scenario have created more or less EVA growth and shareholder value?

You may also like