August 11, 2025

Value-Based Financial Performance Analysis (EVA, MVA, and FVA) of Heavy Construction Companies Listed on the Indonesia Stock Exchange

Key Points

Positive economic value added was recorded by 8 out of 10 heavy construction companies during 2021-2023, indicating profitability.
The industry average for economic value added reached IDR 208.85 billion, while market value added remained negative at about IDR 1.93 trillion.
Financial value added was positive across all companies studied, averaging IDR 1.09 trillion, pointing to effective value creation despite market challenges.
The findings suggest that while firms in the heavy construction sector are financially sound, they struggle with maintaining market trust.

Abstract

This study aims to assess the financial performance of companies in the Heavy Construction and Civil Engineering subsector listed on the Indonesia Stock Exchange (IDX) during the period of 2021 to 2023 using a value-based approach, namely Economic Value Added (EVA), Market Value Added (MVA), and Financial Value Added (FVA). The data were obtained from the financial statements of 10 companies selected through purposive sampling. The analysis revealed that 8 out of the 10 companies recorded positive EVA, with an industry average of IDR 208.85 billion. In contrast, only 3 companies showed positive MVA, while the overall industry average for MVA remained negative at approximately IDR (1.93 trillion). All sampled companies reported positive FVA, with an average value of IDR 1.09 trillion. These findings suggest that while the firms are able to create economic and financial value, they continue to face challenges in building or maintaining market trust

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