| A measure of corporate performance which reveals whether a company is earning more or less than the amount which its capital is costing. If value is being added to the enterprise Ñ in other words post-tax earnings less the opportunity cost of the capital is positive Ñ it is good news for shareholders. If not, shareholders have cause for grievance because their capital would be better employed in a bank account earning interest. EVA can also be seen as the monetary value of an entity at the end of a time period minus the monetary value of that same entity at the beginning of that time period.
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