Economic value added (EVA) is a method of performance evaluation that adjusts accounting performance for investors' required return on investment. Suppose a division produces a 12% return on capital invested. Given the risk of the division's business line, if investors would usually require 14% on capital invested for this level of risk, the division destroyed shareholder value by the EVA metric. This Stern-Stewart has a trade mark on this term.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). economic value added (eva). Retrieved September 23, 2026, from http://smartdefine.org/economic_value_added_(eva)/definitions/1152711 |
| Chicago | Barry Goldsmith. 2010. "economic value added (eva)" http://smartdefine.org/economic_value_added_(eva)/definitions/1152711 (accessed September 23, 2026). |
| Harvard | Barry Goldsmith 2010, economic value added (eva), Smart Define, viewed 23 September, 2026, <http://smartdefine.org/economic_value_added_(eva)/definitions/1152711>. |
| MLA | Barry Goldsmith. "economic value added (eva)" 21 October 2010. Web. 23 September 2026. <http://smartdefine.org/economic_value_added_(eva)/definitions/1152711> |