[Verse 1] When market value seems too high or low Traditional methods don't reveal the glow Look beyond the cash flows dancing free Residual income holds the hidden key Economic profits tell a deeper tale When returns exceed what shareholders hail [Chorus] R-I-V, subtract and see Book value plus the excess spree Required return gets stripped away What's left behind will guide your way Economic Value Added bright Residual income shines the light [Verse 2] Take your equity book value base Add present value of the surplus chase Net income minus equity cost Shows wealth creation, nothing lost WACC times capital employed Subtract from NOPAT, truth deployed [Chorus] R-I-V, subtract and see Book value plus the excess spree Required return gets stripped away What's left behind will guide your way Economic Value Added bright Residual income shines the light [Bridge] When companies destroy or build Residual tells what shareholders yield Above the hurdle rate they climb Creating value through space and time EVA measures management's art Playing their wealth-creating part [Verse 3] Abnormal earnings period by period Discount each surplus, systematic Sum them up with current book Alternative valuation hook Same result as DCF But perspective cuts like chef [Chorus] R-I-V, subtract and see Book value plus the excess spree Required return gets stripped away What's left behind will guide your way Economic Value Added bright Residual income shines the light [Outro] Economic profits crystal clear Residual income draws you near Value creation's truest friend Alternative methods blend
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