Financial statements reflect only the book values of the data that analysts use to evaluate a company$$s performance. To incorporate market values, two additional performance measures were developed$$market value added $($MVA$)$ and economic value added $($EVA$).$

The EVA metric effectively measures the amount of shareholder wealth that the firm$$s management has during a specific period of time. A EVA value indicates that the firm$$s managers have reduced the firm$$s value, and shareholders might have earned more value by investing in some other investment with the same risk level.