School of Business
Primary Subject Area
Business Administration, General
Economic Value Added
Finance and Financial Management
Rago, Mike, "An Analysis of Economic Value Added" (2008). Senior Honors Theses. 46.
The purpose of this paper is to provide an overview and analysis of the Economic Value Added metric. Several large, well known companies have begun to use EVA in recent years as an internal measure of performance, and one may speculate that its popularity will only continue. This paper shows what the EVA metric is and highlights some advantages and disadvantages from its proponents and critics.