Economic Value Added

Show Summary Details

Quick Reference

A performance measure used to evaluate a company’s economic profit (i.e., the value added to a company by its activities in a given time period). It is the calculation of a company’s net operating profit after taxes, minus a cost of capital charge for the investment or capital employed in the business. The Stern Stewart consulting organization registered EVA as a tradename in the 1990s.

Subjects: Financial Institutions and Services — Accounting.

Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.