Testimonials

  • "We continue to use Economic Value Added as the basis for disciplined decision making around the use of capital. EVA® is a tool that considers both financial earnings and a cost of capital in measuring performance. We look for opportunities to improve EVA® because we believe there is a strong correlation between EVA® improvement and creation of shareholder value." The Williams Companies, 2007 Annual Report
  • "The EVA® methodology explicitly addresses business and financial risk and allows the investor to gauge the magnitude and sustainability of returns. Of all financial measures, it best explains the creation of shareholder value." Credit Suisse, EVA Primer
  • "EVA® more accurately reflects economic reality (as opposed to accounting reality) when compared with many traditional valuation measures, such as earnings-per-share, return on equity and free cash flow." Goldman Sachs, EVA Primer
  • "Williams is adopting [Stern Value Management’s] EVA® Financial Management System. This is a prudent move, one that might have staved off the 2002 disaster had it been implemented before the ill-fated decision to go into energy marketing and trading." Merrill Lynch Research
  • "I take my hat off to [Stern Value Management]. Don't say I've never heard of M&M. If you've heard of EVA®, you have. Many of the essential notions underlying that were first stated in M&M. EVA® is simply M&M translated into English. You have to account for the cost of capital or you're nowhere. The people at [Stern Value Management] are very talented at applying M&M to real world situations. They're more entrepreneurial. We wrote the article. For us, that was the end of it. On the next thing, they set up a firm, and are working with management in ways that neither Franco nor I would be very good at." Merton Miller, 1990 Nobel Prize Laureate in Economics