Limitations of EVA
It would be wrong to say that EVA is not beset with any drawbacks. Though it provides a new tool in the hands of management, it has its own limitation. For example. EVA does not take into cognizance current market value of assets and bod value is taken into accountincalculations. This is of course misleading and presents distorted picture but estimating the current market value of assets is very difficult and often impractical