Today's hottest financial idea and getting hotter" by FORTUNE magazine, Economic Value Added (EVA) is the hot topic of conversation among Financial analysts and Economist. EVA, a registered trademark of Stern Stewart & Co. is an estimate of a firm's economic profit- being the value created in excess of the minimum required rate of return of the company’s investors. Having provided the meaning of the economic profit, it can be understood that a company creates shareholders’ value only if generates returns in excess of its cost of capital. The excess of returns over cost of capital is simply termed as EVA. Here the cost of capital, includes both debt and equity cost. In contrast, the accounting measures allow debt cost only. This creates a critical issue to select a measure which reflects the performance of the company as well as the market performance. Hence in this book, the focus is on EVA to study its ability in reflecting the corporate performance in the light of maximizing the shareholders’ wealth. Besides this, the usefulness of EVA in the investment decision making for the investors is also studied.