Article: EVA Pros And Cons

Introduction Economic Value Added (EVA) is a term introduced and trademarked by Stern Stewart1, a consulting company specializing in performance consulting. EVA is a relatively new performance metric and was designed to replace the older ROI which was in use up until recently by most companies. Definition of EVA The definition of EVA would not make much sense if it were defined in isolation from economic profit. Economic profit is calculated as a difference between: … Read more…