Performance Measurement is a complex area in business as it involves the study of various factors that define the performance of a business. There are many schools of thought which use different measurement techniques based on accounting data. Due to the problems of accounting data, there is more focus now on value-based measures as they give a better insight on the intrinsic company effectiveness or performance and also the extrinsic effectiveness based on the performance of the companies’ stock in the stock market. The paper examines different performance measurement techniques which fall under the category of Value based performance measurement tools which are mainly developed by Stern Stewart and Co.

KEYWORDS: Performance Measurement, Value-Based Measures, Extrinsic Effectiveness, Stock Market.