Is EVA an improvement over ROI, ROE, or EPS?

Is EVA an improvement over ROI, ROE, or EPS?

Economic value added (EVA) is being increasingly recommended as an improvement over traditional measures because of EVA’s strong relationship to a company’s stock price, It uses stock price to measure the difference between the pre-strategy and post-strategy value of a business. EVA is often hard to calculate. It is for this reason that more simpler measures like ROI, ROE and EPS continue to have a widespread usage. Another limitation of EVA is that its concern with only one aspect of the task environment- the stakeholder. The conclusion seems clear. There is no one best measure.