Traditional performance evaluation indices such as net profit, income per share have great limitations because of their failures to clearly reflect the value created for shareholders. As an emerging index to evaluate company's performance, EVA indicates how much value managers increase for shareholders in a certain period thus it is now widely used in both home and abroad.This paper introduces the concept and calculation method of EVA at first in order to present a complete EVA evaluation system. On basis of that, an example of Jiao Yun Co., Ltd with which the paper calculates continuous three years' EVA and does analysis on the results is taken. In terms of comparing the ability of EVA and traditional indices to measure company's performance, EVA's advantage over other indices and its ability to reflect the true performance of company is evidently proven with Jiao Yun's exampleAt last, this paper mentions EVA's limitation and hopes the example of Jiao Yun Co., Ltd can lay a foundation for EVA's application in china. Considering the improving economic environment and upcoming opportunities, EVA must have a bright future in China. |