AUTOMOTIVE STUDY 2025 / Šaroch (ed.) et al.

explicit and implicit (opportunity) costs of invested capital (internal and external equity and debt). e understanding of value drivers in this paper is based on the calculation of EVA using the value spread in the following form:

Where: ROCE t is the return on invested capital (CE) calculated as the ratio of the net operating pro t after tax in year t (NOPAT t ) to the amount of invested capital in year t-1 CE t-1 is the invested capital at the beginning of the year t (i.e., at the end of the previous period) WACC t is the weighted average cost of capital in year t e weighted average cost of capital (WACC) re ects the return required by investors on their debt and equity investments. e rate is calculated according to the following general formula:

Where: c D

is the expected yield to maturity on interest-bearing debt invested in the company after taking into account the interest tax shield (i.e., the after-tax cost of debt) is the market value of the interest-bearing debt invested in the company is the required return on the company’s equity, taking into account the share of debt in the capital structure is the total market value of invested capital (capital employed), CE = D + market value of equity is the e ective tax rate at the valuation date

t

D

c E(L)

CE

For the purpose of the analysis, the results of individual companies were aggregated to calculate the total value of each economic variable for the automotive sector in each country as a whole. From these aggregated values, the indicators under study were then quanti ed. Due to the nature of the information available from the Orbis - Bureau van Dijk database, the analysis is based on the assumption that all assets ( xed and current) are considered to be the part of so called operating assets and therefore that all these assets are essential to the core business and cannot be removed without impairing the ability of the company to generate cash ows from operations. EBIT ( earnings before interest and tax ), which determines the operating pro tability, was also taken from the Orbis - Bureau van Dijk database without further adjustment. e cost of equity was calculated using the CAPM ( capital asset pricing model ), which works with the return on a risk-free investment, a market risk premium, a beta coe cient as a measure of systematic risk and possibly other risk premiums. e cost of

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