ROCKVILLE, M.D. (February 12, 2018) – Institutional Shareholder Services Inc. (ISS), the leading provider of end-to-end governance and responsible investment solutions to the global financial community, today announced the acquisition of the business of EVA Dimensions LLC, a business intelligence firm that measures and values corporate performance based on the Economic Value Added (EVA) framework. EVA is an established standard in measuring, analyzing, projecting, valuing and discounting a firm’s underlying economic profit rather than its bookkeeping profit.
“This acquisition will allow ISS to provide our clients a cutting-edge holistic means of assessing and defining performance of their portfolio companies,” said ISS President & CEO, Gary Retelny. “Combined with our expanding suite of data and analytical portfolio tools, EVA will help investment professionals to determine the intrinsic value or risk of portfolio companies.”
EVA brands and trademarks include PRVit (the stock ranking model) and CPI (the Corporate Performance Index ranking of financial excellence). PRVit, which uses 24 measures to quantify risk-adjusted EVA performance relative to a company’s current market value, is updated daily with coverage spanning 18,000 companies globally and historical data going back two decades.
CPI is a measure of financial excellence, ranking companies against peers and the market in general on the basis of their EVA performance and the wealth they have created for shareholders. Often used as a supplement or alternative to Total Shareholder Return (TSR), CPI measures the underlying health and performance of a business, with coverage tallying 18,000 companies globally and with daily updates. A list of companies ranked by their CPI measure is available here.
“The acquisition of EVA Dimensions underscores the importance and currency of the EVA measure and framework, which ISS and a growing number of institutions view as a credible supplement to TSR and means to guide management decision-making and resource allocation,” said Bennett Stewart, Founder and CEO of EVA Dimensions and co-creator of EVA. “The team and I look forward to working closely with our new colleagues in furtherance of ISS’ work and position as the leading provider of corporate governance and responsible investment solutions.”
EVA Dimensions also offers an EVA-based enterprise software system that helps CFOs, financial analysts, corporate planners, development officers, and IR directors make more informed decisions. The solutions convert financial results and business plan projections into real financial intelligence by measuring, benchmarking, dissecting, and valuing financial performance through an EVA lens.
Following completion of the acquisition and later in 2018, EVA Dimensions subscribers will be able to access solutions securely and via ISS’ industry leading technology infrastructure. ISS has in recent years invested significantly in the implementation of state-of-the-art data centers and enhanced cybersecurity measures to help ensure the protection of client information and ease of access to platforms.