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17.6 Appendix: Describe Other Measures Used to Analyze a Company

Other Measures​

Economic Value Added (EVA):

  • Measures value creation
  • Considers cost of capital
  • Advanced measure

Market Ratios:

  • Price-to-earnings (P/E)
  • Market-to-book
  • For public companies

Luxembourg Considerations​

For SMEs:

  • Focus on basic ratios
  • Compare to benchmarks
  • Use for decision-making
  • Less focus on market ratios

Luxembourg Compliance Note​

Other measures in Luxembourg:

  • Some advanced measures available
  • Focus on practical ratios for SMEs
  • Use for analysis
  • Support decisions

Think It Through​

What other measures might be useful for analyzing a business? When are they most appropriate?