• "The chief difference between DCF and Economic Value Added® is one of presentation and focus. By highlighting the fact the capital has a cost, Economic Value Added® spotlights the importance of capital budgeting decisions. Economic Value Added® also provides a transparent year-by-year tally of company performance. DCF, on the other hand, obscures the underlying economic value trend by treating a dollar of free cash flow the same whether it merely covers the cost of prior capital investments or actually provides a return above the cost of capital. This latest version of management science is helpful because it highlights the tendency in DCF models to deemphasize the need for future capital expenditures and reap the benefits created from old ones." Bruce Wasserstein, Past Chairman & CEO of Lazard
  • "Our business is all about the management of assets, our clients’ assets and our own. And [Stern Value Management’s] Economic Value Added® now guides every major strategic, operational, and compensation decision we make. The work [Stern Value Management] did for us convinced me to strongly support the decision to hire them at JCPenney, where I am a director. If you are going to implement EVA®, I would suggest you employ the people who invented EVA®." M. Anthony Burns, Past Chairman & CEO of Ryder System
  • "Last year over 85% of our employee-owners attended a seminar to learn about a new financial framework called Economic Value Added®. This new financial tool enables employee-owners to better judge the value of potential investments and helps guide our continuous improvement efforts. Last year the EVA® generated was $40.9 million, an increase of 296%. Our EVA® tripled and our stock price increased 131.6%. Once again, it demonstrates the power of participation at Herman Miller- and we’re not done yet." Michael Volkema, Chairman of the Board of Herman Miller, Inc.
  • "We tested discounted cash-flow – it was not much of a success. It is too abstract. Too far from the current reporting system and our annual financial statements. EVA® removes the confusion, arising from the existence of the several planning measures and creates a common language for everyone – for the simple employee and for the top manager." Karl-Hermann Baumann, Past Chairman of the Supervisory Board of Siemens
  • "Our commitment to EVA® has consistently yielded strong cash flow and earnings. We built the scale to grow with our global customers, with greater access to global end markets, market-leading product lines on both sides of our business, and support services that deliver real value. Over this period, both sales and operating earnings have grown twentyfold. Strengthened by our strong EVA®-based culture, we have also stepped up our ongoing efforts to control costs, improve operating efficiency, and optimize our returns on invested capital. These measures are helping us manage through weaker demand for our cranes worldwide until economic conditions improve." Glen Tellock, Chairman & CEO of Manitowoc Company
  • "Taken as a whole, the changes in financial ratios summarized in this study are consistent with actions aimed at increasing the companies’ EVA®. And, as finance theory would lead us to expect, such increases in EVA® have been accompanied by superior stock market performance." Professor Robert Kleiman, Oakland University