Is EVA more highly associated with stock returns and firm values than ROE, ROA and EPS growth?
Foo, Shiang Peow.
Tan, Boon Kee.
Date of Issue2000
College of Business (Nanyang Business School)
The Economic Value Added (EVA®) is a value based performance measure that has attracted much interest and acceptance in recent years. EVA focuses on a firm's ability to earn economic profits (i.e. rates of return on invested capital (ROIC) in excess of its weighted cost of capital (WACC)). EVA relies on three key value drivers: cash flow, risk and competitive advantage.
Nanyang Technological University