What is the 'Economic Value Of Equity  EVE'
A cash flow calculation that takes the present value of all asset cash flows and subtracts the present value of all liability cash flows. This calculation is used by banks for asset/liability management.
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BREAKING DOWN 'Economic Value Of Equity  EVE'
The value of a bank's assets and liabilities are directly linked to interest rates. By calculating its EVE, a bank is able to construct models that show the effect of different interest rate changes on its total capital. This risk analysis is a key tool that allows banks to prepare against constantly changing interest rates.
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Present Value  PV
The current worth of a future sum of money or stream of cash ... 
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The net amount of cash and cashequivalents moving into and out ... 
Operating Cash Flow Ratio
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Liability Adjusted Cash Flow Yield ...
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A measure of the amount of cash generated by a company through ... 
NonOperating Cash Flows
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