Value creation (See Chapters 14 and 19 of the Vernimmen) A company will be able to create value during a given period if the return on capital employed (after tax) that it generates exceeds the cost of capital (i.e. equity and net debt) that it has raised to finance capital employed. It leads to enterprise value being higher than the book value of the capital employed. Value creation (See Chapters 14 and 19 of the Vernimmen) A company will be able to create value during a given period if the return on capital employed (after tax) that it generates exceeds the cost of capital (i.e. equity and net debt) that it has raised to finance capital employed. It leads to enterprise value being higher than the book value of the capital employed. See all terms in the dictionary of finance To know more about it, look at what we have already written on this subject :

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Definitions of terms begining with the same letter as "Value creation" :

VAR VBI VWAP Value Value added Value and financial securities Value at risk Value creation

Value drivers Value of Business in Force Value stock Variable costs Variance Variance Swap Vega Venture capital

Volatility Volatility - bonds Volatility - dividends Volume growth Volume-weighted average price Vulture fund