COV®Current Operations Value
Current Operations Value measures the portion of market value attributed to the existing level of profitability and assets at the firm. It equals the present value of current EVA® in perpetuity, plus Capital in place. Alternatively, it can be calculated as NOPAT divided by the WACC. The market value split between COV® and FGV® is often homogenous within sectors. For example, the COV® portion of Market Value tends to be very high in mature markets such as food processing and tobacco, and relatively low in growth markets such as technology.