EHP, Effective Health Points, is something familiar to those who have played a tank class in a MMO. In WAR I think it is something everybody should be aware of, because in a PvP enviroment everybody is a tank

Lots of the theorycrafting and examples are taken from
http://www.warhammeralliance.com/forums/showthread.php?t=100152 , please do take a look there for a more vivid discussion on this

In WAR we have two things affecting health: Wounds (each wound add 10 health) and Toughness (each toughness reduces incoming damage by 0.2 DPS). In items Wounds and Toughness (and everything else too) have same value: Same item in its different variations can give +20 Toughness or +20 Wounds (or Iniative, or Weaponskill, etc etc).
50 wounds is 500 health. 50 Toughness reduces incoming damage by 10 DPS.
Lets say you recieve 250 damage from a single source over 5 seconds. If you had 50 toughness more you would instead have taken 200 damage, but if you had 50 extra wounds you would now have 200 health more left. Isn't wounds simply way better always?
Let's say you are a paper-doll with 6000 health. Let's say you are taking 2500 damage over 5 seconds from 10 different sources (for example 3 players whacking you and a couple dots on you).
If you had 50 wounds extra, you would have taken effectively 2000 damage (6000+500 - 2500), but if you had 50 toughness extra instead, you would have taken effectively 2000 health. With the extra wounds you would thus be at 4000 health, while if you had the 50 toughness extra you would be at 4000 health too!
Now calculate in healing. Lets say you have warrior priest that is able to heal you for 1000 points every five seconds. Lets see what the health is after each 5 seconds if you are the "paperdoll" (1), have +50 wounds (2), have +50 Tougness (3)
1) 6000, 4500, 3000, 1500, 0
2) 6500, 5000, 3500, 2000, 500, -1000
3) 6000, 5000, 4000, 3000, 2000, 1000, 0
Now, I don't claim Toughness is better than wounds. It is not! But in situations where there is lots of healing available and lots of sources of damage, it is better to stack up on Toughness really good. Especially the tanks, but others too, might be adviced to hold on to "Tougness gear" if it is equally good as "Wounds gear" otherwise. As a general rule of thumb, Wounds let you survive the initial spike damage, but Toughness keeps you going for longer (if you just made it through the first seconds

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In essence, both Wounds and Toughness increase you Effective Health Poins. It is important to keep these two balanced, and if necessary, swap in different gear for different situations
