Value Creation and Market Perception in the Construction Sector: Adjusted EVA and MVA Analysis

Purpose – This study aims to assess the financial performance of firms listed in Borsa Istanbul’s Construction and Public Works sector through the calculation of adjusted Economic Value Added (EVA) and Market Value Added (MVA). In this context, the association between the value created by these companies and their market values is examined. Design/methodology/approach – In the study, adjusted EVA and MVA values for the 2022–2024 period were calculated using the financial data of the relevant firms, and the relationships between these indicators and Market Value (MV) were tested through statistical analyses. Results – The results indicate that negative EVA values prevail across the sector, suggesting that most firms have been unable to cover their cost of capital. While a strong relationship was observed between MVA and Market Value (MV) in the first year, a negative and statistically significant relationship was found between EVA and MV for all years. However, no significant relationship was identified between EVA and MVA. Discussion – The findings reveal that investor behavior does not always align with companies’ internal performance indicators. This indicates that relying solely on a single metric in the evaluation of financial performance may be insufficient. On the other hand, the findings of the study show both similarities and differences compared to previous research. These differences may stem from sectoral and regional dynamics as well as variability in investor perceptions. Thus, this study reveals that financial performance indicators can carry different meanings depending on the sectoral context, and that contextual factors should be taken into account when interpreting these indicators.