EVA | Economic Value Added

All companies aim to increase wealth
and drive shareholder value.

ARTICLE

EVA is the metric that most closely tracks with TSR over the long-term.

How EVA compares to other financial metrics

  • The only metric where more is always better
  • Adjusted for the cost of capital
  • Free of accounting distortions
  • Comparable across industries and business models
  • Always discounts to the NPV of free cash flows
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EVA
FOR COMPANIES

Understand your stock price

Benchmark against peers

Model future outcomes

Make better decisions

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EVA
FOR INVESTORS

Consistent and transparent measurement

Leading indicator, predictive of future stock prices

Applicable across industries

The Benefits of EVA Explained

{WITH LEMONADE!}

EVA REMEMBERS
INVESTORS

EVA ENCOURAGES RESPONSIBLE MANAGEMENT

EVA MAKES BENCHMARKING EASY

EVA | IN PRACTICE

EVA helps companies understand what is driving their share price. It is the same across industries and the only management metric where more is always better.

DOWNLOAD EVA RESOURCES

No matter how good you are, no matter how good you think you are – you have inefficiency. You are making poor decisions today. You’ve got to minimize those and you’ve got to use metrics to do it. You are what you inspect, not what you expect.

President & CEO, Fortune 50 Company

LEARN MORE ABOUT EVA

HOW ICS CAN HELP

Free EVA Profile

All ISS covered companies are entitled to download their EVA profile for free.The profile can help companies understand their current rank within their index and EVA value.

LOGIN to Governance Analytics.
Navigate to MY COMPANY / EVA PROFILE.
If you don’t have a Governance Analytics login,please email contactus@isscorporateservices.com.

Contact an EVA Expert

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