In today's dynamic business landscape, traditional financial metrics often fall short of providing a complete understanding of a company's true economic performance. This research paper delves into the concept of Economic Value Added (EVA), a comprehensive performance metric that bridges the gap between economic and financial evaluation. EVA offers a comprehensive and holistic measure of a company's value creation potential by integrating both explicit and implicit costs. Through an in-depth exploration of EVA's components, implications, and real-world application, this paper highlights its significance in strategic decision-making, investment evaluation, and long-term sustainability. A case study of Tata Consultancy Services (TCS) illustrates how EVA surpasses conventional financial metrics, enabling a more accurate evaluation of a firm's economic performance.

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Keywords: EVA, Modern Business, True Value, Financial Metrics, TCS.