Embedded Value

A common valuation measure used outside North America, particularly in the insurance industry. It is calculated by adding the adjusted net asset value and the present value of future profits of a firm. The present value of future profits considers the potential profits that shareholders will receive in the future, while adjusted net asset value considers the funds belonging to shareholders that have been accumulated in the past.

Embedded Value

Embedded value is a conservative valuation method, as it excludes certain aspects of goodwill from its calculation of a company's worth. Goodwill includes intangible assets that increase the value of a company beyond its assets minus liabilities, such as strong management, good location and a happy workforce. Furthermore, to add to its conservatism, the EV calculation of a firm does not allow for any increase in future business.

Investment dictionary. . 2012.

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  • embedded value — UK US noun [C or U] (ABBREVIATION EV) ► FINANCE, INSURANCE the value of an insurance company not including any value that would be earned in the future. It is calculated by adding the value of present cash flows to the net asset value: »The… …   Financial and business terms

  • Embedded value — The Embedded Value (EV) of a life insurance company is the present value of future profits plus adjusted net asset value. It is a construct from the field of actuarial science which allows insurance companies to be valued.BackgroundLife insurance …   Wikipedia

  • Embedded Value — Als Embedded Value bezeichnet man den nach einer speziellen Methode bestimmten Wert eines Personensversicherungsbestandes. Er setzt sich zusammen aus dem Barwert der erwarteten künftigen Netto Erträge aus dem Versicherungsbestand einschließlich… …   Deutsch Wikipedia

  • European Embedded Value — Als Embedded Value bezeichnet man eine spezielle Methode zur Bewertung von Versicherungsbeständen. Der Wert setzt sich zusammen aus dem Barwert der erwarteten künftigen Netto Erträge aus dem Versicherungsbestand einschließlich der Kapitalerträge …   Deutsch Wikipedia

  • European Embedded Value — The European Embedded Value (EEV) is an effort by the CFO Forum to standardize the calculation of the Embedded value. For this purpose the CFO Forum has released guidelines how embedded value should be calculated.There is a lot of uncertainty… …   Wikipedia

  • Embedded OpenType — Filename extension .eot Internet media type application/vnd.ms fontobject Type of format outline font Embedded OpenType (EOT) fonts are a compact form of OpenType fonts designed by Microsoft for use as embedded fonts on web pages. These files… …   Wikipedia

  • Value type — In object oriented programming, a value type is a data type that can exist outside dynamic memory allocation. Unlike reference types, value types can be directly embedded into composite objects.Primitive types are always value types.Value types… …   Wikipedia

  • Value Partners — Infobox Company company name = Value Partners Management Consulting company type = Partnership company company slogan = Making the difference through results foundation = 1993 location = Milan, Italy key people = Giorgio Rossi Cairo, Vittorio… …   Wikipedia

  • Knowledge Value — The idea that knowledge has value is ancient. In the first century AD, Juvenal (55 130) [Juvenal (Decimus Juvenalis) (55 130) Satires 7.118] stated “All wish to know but none wish to pay the price. In 1775, Johnson [Johnson, Samuel (1775) in:… …   Wikipedia

  • RDM Embedded — Infobox Software name = RDM Embedded caption = developer = Birdstep Technology, Inc latest release version = 8.1 operating system = Cross platform genre = DBMS license = Commercial license website = [http://www.raima.com/ Raima Database Manager]… …   Wikipedia

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