<![CDATA[Capital is an important component that determines company’s operation. Issuingstock would be effective if it can add value to the company economically. One approach thatcan be implemented for company valuation is Economic Value Added (EVA), which takes intoaccount the cost of capital. This cost is formerly abandoned by companies, although it is verycrucial in value creation for the company. This research tries to asses company’s financialperformance using EVA approach and correlate it to stock price.Research objects cover transportation service companies listed on the Jakarta StockExchange (JSX) during period of 2003-2005. The companies have important roles inmobilizing product and services needed by society.The result shows that most transportation companies listed on the JSX during 2003-2005 have not able to create economic value added. Result of correlation analysis shows thatthe relationship between EVA value and stock price is not in the same direction (negative),very weak, and not significant.]]>
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