A COMPARATIVE ANALYSIS ON EVA & MVA OF A LEADING I.T. COMPANIES OF INDIA

Maximizing shareholders value has become one of the new corporate practices in recent years. The Companies, which have given less preference to shareholders curiosity, are now giving the utmost preference to it. Shareholder’s wealth is measured in terms of returns they receive on their investment. It can either be informs of dividends or in the form of capital appreciation or both. Capital appreciation depends on the changes in the market value of the stocks. There has been a swelling concern about the performance measures based on traditional accounting information such as Return on Equity (ROE), Earning per Share (EPS), Net Operating Profit after Taxes (NOPAT) and Return on Investment (ROI) etc. But EVA and MVA are the two different approaches to measure the existing financial status and predicting the future performance of the company. The present study is an attempt to determine the financial performance of selected I.T. Sector companies in India and position them based on their mean EVA and MVA for the tenure of 3 years from 2017-18 to 2019-20.

               

KEYWORDS: ROE, EPS, NOPAT, ROI, EVA and MVA, Capital Appreciation.


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