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Glossary   >   E   >   "Economic value added" Definition            Economic value added A measure of corporate performance which reveals whether a company is earning more or less than the amount which its capital is costing. If it is, value is being added to the enterprise, which is good news for shareholders. If it isn"t, shareholders have cause for grievance because their capital would be better employed in a bank account earning interest. Glossary    Dictionary Search (powered by Google) WWW ITLOCUS.COM GLOSSARY.ITLOCUS.COM Translate a web page (powered by Google)      to German Spanish French Italian Portuguese Japanese Korean Chinese

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Economic value added - A measure of corporate performance which reveals whether a company is earning more or less than the amount which its capital is costing. If it is, value is being added to the enterprise, which is good news for shareholders. If it isn"t, shareholders have cause for grievance because their capital would be better employed in a bank account earning interest.