Unlocking Stock Market Success: How Value Measures Drive Investor Returns
Manufacturing companies in Indonesia Stock Exchange were studied to see how Economic Value Added (EVA), Market Value Added (MVA), and Refined Economic Value Added (REVA) affect stock prices and returns. The researchers found that EVA, MVA, and REVA have a positive relationship with stock prices and returns. This means that using these methods to evaluate a company's performance can strongly impact its stock prices and returns. The study shows that value-based valuation is crucial for investors, as it helps determine if an investment will bring in more returns than the cost of capital.