Dmitrii A. Potapov Natalya V. Ulyanova Alexander N. Khorin Approaches to Calculating EVA for Oil and Gas Companies to Assess Value Created

DOI: 10.38050/2078-3809-2026-18-2-117-137

Abstract

EVA indicator and its constituents (ROIC and WACC) can be used to estimate the return on invested capital relative to the cost of capital as well as value created by a company. The purpose of the study is to develop the approaches for estimating ROIC and WACC, resulting in consistency of these metrics for the purpose of increasing relationship between market capitalization and EVA. Using the statistical methods and financial analysis methods based on the sample of the largest Russian public oil and gas companies it was identified that their EVA dynamics for 2017–2021 demonstrates decreasing amount of value created, which contradicts with the increase of market capitalization of these companies over the same period. The study introduces the approach for estimating key balance sheet items of oil and gas companies (debt and fixed assets) on the basis of historical cash inflows for these items, which results in decreasing influence of value judgement on their valuation. The results of calculation using the introduced approach demonstrate the increasing convergence of historical EVA and market capitalization for some of the companies from the sample and identify some areas for future research.

Keywords: economic profit, economic value added, return on invested capital, cost of capital, fair value, oil and gas companies.

JEL: G17, G30, G31, G32.

For citation: Potapov, D.A., Ulyanova, N.V., Khorin, A.N. (2026) Approaches to Calculating EVA for Oil and Gas Companies to Assess Value Created. Scientific Research of Faculty of Economics. Electronic Journal, vol. 18, no. 2, pp. 117-137. DOI: 10.38050/2078-3809-2026-18-2-117-137.

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