Economic value added (EVA)

Definition: [crh] A method of performance evaluation that adjusts accounting performance for investors' required retuDefinition: rn on investment. Suppose a division produces a 12% return on capital invested. Given the risk of the diDefinition: vision'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. Definition: This Stern-Stewart has a trade mark on this term.

<< Go back