The Economic Value Added (EVA) is a new way to measure a company's financial performance. It looks at how much profit a company makes compared to the capital it uses. EVA helps show if a company is creating or destroying value for its shareholders. Unlike traditional profit measures, EVA considers the cost of the capital used. This means a company could be making profits but still not creating value for shareholders if the returns are low compared to the capital invested. EVA is gaining popularity as a better way to understand and evaluate financial performance.