Some researchers believe that the Economic Value Added (EVA) is the best measurement for firms’ performance evaluation. On the other hands, Biddle’ research shows that although EVA may be better than Cash From Operations (CFO), but some accounting performance evaluation measurements as Earning Before Interest and Taxes (EBIT) may outperform EVA. This paper is aimed to determine the correlation coefficients among the Economic Value Added (EVA), Earning Before Interest and Taxes (EBIT), Cach From Operations (CFO), and Share Market Value (MV). In order to determine the correlation coefficients and test the ability of EVA measure and compare it to EBIT and CFO, we have implemented an empirical study in the Tehran Stock Exchange (TSE). Results of the research (at the confidence level of 95% and using 221 year-company data from the TSE) clearly show that although EVA is more correlated to firms’share market values than CFO, but EBIT outperforms EVA. In the other words, the results completely confirm the results of Biddle’s research. It means that although EVA is a good economic measurement but it may be outperformed by some accounting measures as EBIT.
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