In theory, the Economic Value Added (EVA) is the amount by which the firm increases or decreases Market Value Added (MVA) in the current year.

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The Economic Value Added (EVA) is calculated as the net operating profit after taxes (NOPAT) minus a charge for the cost of capital invested in the business. The idea behind EVA is to measure a company's true profit after taking into account the cost of all the capital used to generate that profit. MVA, on the other hand, is the difference between the market value of a company and the capital contributed by investors. EVA is therefore used as a tool to improve a company's MVA, and in theory, a positive EVA will result in an increase in MVA.

In Theory, the Economic Value Added (EVA) Is the Amount