What does Economic Value Added (EVA) mean?

All definitions and examples >> Economic added value

Economic added value (EVA for short)

Compared with other traditional evaluation methods, such as earnings per share, return on net assets or free cash flow, EVA can reflect economic reality and accounting results more accurately.

EVA not only focuses on creating value for shareholders, but also helps investors and managers to better evaluate, observe and understand the driving factors and destructive factors of the company.