Financial Peformance Analysis Using EVA and MVA Methods

Authors

  • Muhammad Ammar Fazzah Politeknik Negeri Sriwijaya
  • Hendra Sastrawinata Sriwijaya State Polytechnic
  • Afrizawati Sriwijaya State Polytechnic

DOI:

https://doi.org/10.54099/hbr.v6i2.1972

Keywords:

Financial Statements, Economic Value Added, Market Value Added

Abstract

Purpose-This study aims to assess the financial performance of PT Wijaya Karya Bangunan Gedung Tbk for the period 2020-2024 using the Economic Value Added (EVA) and Market Value Added (MVA) approaches. The methodology employed is quantitative descriptive, utilising secondary data in the form of the company’s annual financial statements. EVA was measured by calculating Net Operating Profit After Tax, Invested Capital, Weighted Average Cost of Capital, and Capital Charge, whilst MVA was calculated by comparing the company’s market value to its invested capital. The results of the analysis show that the company’s EVA over the five-year observation period remained positive, amounting to Rp18.083 million in 2020, Rp29.157 million in 2021, Rp2.660 million in 2022, Rp6.682 million in 2023, and Rp26.945 million in 2024. These findings indicate that the company is still capable of generating operating profit after tax that exceeds its cost of capital, generating additional economic value. However, MVA showed a negative value throughout the study period. This situation suggests that the market’s valuation of the company is not yet in line with the capital invested by investors, primarily due to a downward trend in share prices. Consequently, the company needs to strengthen operational efficiency, capital cost management and investor confidence in order to increase its market value sustainably. Theoretically, these results underscore the importance of using value-based measures in analysing.

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Published

2026-10-26

How to Cite

Muhammad Ammar Fazzah, Hendra Sastrawinata, & Afrizawati. (2026). Financial Peformance Analysis Using EVA and MVA Methods . Husnayain Business Review, 6(2), 319–324. https://doi.org/10.54099/hbr.v6i2.1972

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