Pros And Cons Of Economic Value Added
Pros And Cons Of Economic Value-Added Uses of the Economic Value-Added metric The EVA metric is mainly utilized as a business valuation tool. Some of the EVA supporters such as P.C. Narayan from the Indian Institute of Management (IIM), Bangalore defends EVA over other measures of profitability because it illustrates possible earnings in the future. According to Narayan, this is so because metrics like Earnings Per Share (EPS) only depict how well a company is meeting the past financial expectations of the stock-holder and does not show the possibility for capital reinvestment....