Title

The Value of Economic Reality: Applying Economic Value Added

Publication Date

April 2007

School

School of Business

Major

Business: Finance

Primary Subject Area

Business Administration, Accounting

Keywords

EVA, Economic Value Added, Economic Reality

The concept of Economic Value Added (EVA) is a revolutionary way to measure the value of a business. In its simplest form, EVA is a system that determines companies’ worth and performance based on their economic reality, not numbers produced according to traditional accounting rules. EVA sets high standards for measuring performance and is essential for all companies wishing to create value for their shareholders.