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To: Joe E. who wrote (80)	2/2/1999 7:37:00 PM
From: Reginald Middleton	Respond to of 419

No, they got thier stuff from some European economist's (Scandinavian if I am not mistaken) work that is quite old (a simple spin on DCF). They are masters at marketing though, which is why you've heard of Stern Stewart but not the originators of economic profit. Since popularization by Stern Stewart, all of the Big Six (Five or whatever) firms have mimicked the economic profit practices, alhtough none have done so with the detail of SS, save RCM of course. The Stern Stewart method is horrible at valuing many high growth tech companies (negative EVA). This is due to some unrealistic assumptions in the methodolgy which I (hopefully:-) have expunged.