Economic Value Of Equity - EVE

The economic value of equity, or EVE, is a calculation of money currently flowing into and out of a bank. EVE goes with the flow, just like OG Eve, biting that apple like it ain't no thang.

In finance-speak, EVE is a cash flow calculation, taking into account the present value of assets, but not the present value of liabilities. Why? Because EVE is used to see how a bank is performing over time. Which means we want snapshots of different "now" moments, looking at short-term costs only, not long-term ones.

EVE doesn't include liabilities, because EVE is often calculated to figure out how to manage liabilities.

Watch out for that snake, EVE.