Traditional performance measures Return on Assets, Return On Capital Employed, Return on Net Worth, Earnings Per Share, etc., have been used as the most important measure of shareholder value creation. But in the recent years, value added measures Economic Value Added (EVA) and Market Value Added (MVA), which measure performance in terms of change in value have received a lot of attention. The reason behind this is that the financial performance of a business organization is measured from the shareholders’ value point of view. Value added represents the wealth created by an enterprise during a specified period. No companies can survive and grow, if it fails to generate value to its shareholders. In this study an attempt is made to examine the financial performance of traditional measures and modern measures. According to our study, it is revealed that Economic Value Added (EVA) is having more explanatory power in driving shareholder value and it is the most significant variable for explaining Stock Market Return.