EVA (Economic value added) was first seen by me in the pages of the Annual Report by Hindustan Lever a few years back.
Simply a Company uses Shareholders' wealth & burrowed capital to run a Business. Consider the cost of borrowing in a year to be 10% say ; shareholders's Wealth Capital & accumulation) does NOT cost any thing but these risk capital may be assigned a cost element 1.25 times the cost of borrowing {extra 25% for risk associated).
Whenever, a Company perform well & in excess of such deemed cost of risk capital, it is said to have EVA plus Company. A simple parameter for this is RONW (Return on net worth) being EPS (earning per share) by BV (book value). Based on Data (sourced from Capital Market, Aug 4-17 issue), the excel incorporate annual BV, EPS & trailing EPS & calculate RONW's ; had used a cut off of 20% RONW in the said source & Sales exceeding Rs. 300 crores to weed out marginal (small) Company.
Nifty are listed in a sheet & others (Including Nifty) in another
https://excel.office.live.com/x/ExcelView.aspx?FBsrc=https%3A%2F%2Fwww.facebook.com%2Fdownload%2Ffile_preview.php%3Fid%3D362945870525538%26time%3D1408251485%26metadata&access_token=1835286898%3AAVKFbDFpGkcVizzIekjx9VUFRuPzMyfOF7pzIEQfkVUZ2g&title=Select_RONW.xlsx
A selection of out performers in EVA positive sense :
A selection of under performers in EVA sense so much so may be called wealth Destroyers
A selection of out performers in EVA positive sense from Indian Corporate world (inclusive Nifty) :
