The Application and Analysis of the EVA Method of Corporate Performance Measurement

摘要

As society and the economy continue to develop, more and more people begin to realize the importance of accurate and cogent measurement of corporate performance. The fundamental difference between the EVA performance measurement method and the traditional net profit index is that when evaluating corporate performance, it is not enough to consider the cost of debt; the cost of capital that stockholders have invested in should also be taken into account. It is only when the profit that a company creates exceeds all its costs, that real value is being created. Focusing on the research of the EVA calculating model of China's listed companies, this paper, through specifically analyzing the EVA method, enables managers to view a company in a new light. It also provides investors with references of the past and present value that is created by a company.