An Empirical Study on EVA and MVA of a Leading Indian Engineering Plastics Company Dr. Balaji C. D.1, Dr. Kumar S. Praveen2 1Professor – Finance Area, MBA Department, Panimalar Engineering College, Chennai 2Associate Professor – Marketing Area, MBA Departrment, Panimalar Engineering College, Chennai Online published on 5 September, 2013. Abstract There has been a long felt realisation that the traditional metrics to analyse a firm's performance neither precisely measure the extent of wealth creation nor attach much value to the cost of equity shareholders funds. Considering the need for measures that can effectively assess wealth creation, Stern Stewart & Company has developed two metrics namely Economic Value Added (EVA) and Market Value Added (MVA). The Indian engineering plastics industry in India has not been immune to the global economic crisis which has led to slowdown of the industrial sector. ShriRam Fibres, which is an important player in the Indian engineering plastics industry has been facing challenging times due to the recent slow-down. The sales and profits of the company are under strain and therefore the researchers considered it appropriate to take up the company for the purpose of assessing the extent of economic and market value added by the company. Top Keywords Wealth Creation Cost of Capital, NOPAT, EVA, MVA. Top |