Is EVA more highly associated with stock returns and firm values than ROE, ROA and EPS growth?

Abstract

The Economic Value Added (EVA®) is a value based performance measure that has attracted much interest and acceptance in recent years. EVA focuses on a firm's ability to earn economic profits (i.e. rates of return on invested capital (ROIC) in excess of its weighted cost of capital (WACC)). EVA relies on three key value drivers: cash flow, risk and competitive advantage.