ISS STOXX - EVA (Economic Value Added)
The data offers solutions for:
Investment decisions and portfolio insight
Who are the data users?
- Corporates
- Trustees
- Investors
- Government
- Financial institutions
- Index providers
Brief description of the data offering
EVA (Economic Value Added) is an established standard in measuring, analysing, projecting, valuing, and discounting a firm’s underlying economic profit rather than its accounting profit. The EVA platform allows investors to parse through thousands of companies globally with comparable accounting adjustments to drive informed investment decision making on a systematic basis. With coverage of approximately 24,000 issuers as of March 2022, this solution enables investors to measure, analyse, and value corporate performance and inform investing decisions.
Founded in 2006 and acquired by ISS in 2018, EVA provides investment professionals insight to determine the quality and valuation of a portfolio company.
The EVA Framework: a powerful platform & framework that converts accounting profits into economic profit.
- Superior to traditional measures of profit: EVA cuts through accounting distortions and charges for the use of capital
- Consistent, transparent framework: EVA is comparable across companies, industries and countries
- Style agnostic: provides an unbiased view of Quality, Value, and Growth investment opportunities
- Leading indicators: EVA metrics are predictive of future stock prices
EVA in the Investment Decision Process:
- Screening and Idea Generation: narrow the universe of investible ideas to those that are likely to outperform using an objective investment framework that is effective regardless of investment style.
- Single stock and multiple stock analysis: analyse the overall EVA profitability of a company, the choices management made to drive that EVA, and value the company with unique metrics.
- Portfolio analysis: View a fund’s exposure to EVA relative to benchmark.
Where and how do you source your data?
EVA data is typically derived from company filings, as well as ongoing event-driven data updates as reflected in public disclosure, press releases and company web sites. In addition, ISS subscribes to a number of critical, paid data services that is also factored into the EVA analysis.
What is the cost for your data offering?
Pricing is based on the method by which data is delivered. ISS ESG can provide data via its proprietary platform or via data feed. Pricing for this solution is available upon request.
What are the key attributes that differentiates the data you offer?
EVA provides investors with a differentiated approach to the investment decision process.
- Superior to traditional measures of profit: EVA cuts through accounting distortions and charges for the use of capital
- Style agnostic: Provides an unbiased view of quality, value, and growth investment opportunities
- Leading indicators: EVA metrics could provide information that may lead to future stock prices
- Consistent, transparent framework: EVA is comparable across companies, industries and countries
- Global coverage: Coverage spans approximately 24,000 issuers, with historical data going back two decades
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@ISSESG’s Economic Value Added (#EVA) provides #investors with a differentiated approach to the investment decision process by measuring, analyzing, projecting & valuing a company’s underlying economic profit rather than its accounting profit.
Learn more: https://www.issgovernance.com/eva/
