Purpose:

To explain the relationship between the value of Mexican Stock Exchange companies (BMV) measured through the capitalization value and economic value added (EVA) methods, at a sector level, from 2006 to 2017.

Methodological design:

The EVA and capitalization value methods were applied in the period from 2006 to 2017, taking the companies listed on the Mexican Stock Exchange as the sample; a Pearson relationship correlation was then measured between both indicators.

Results:

No relationship was found between the company’s value measured through capitalization value and EVA during the studied time span. Capitalization value tends to rise while EVA shows a light downward trend.

Research limitations::

The number of companies in each sector is small with some sectors comprised by one company only.

Findings:

Since capitalization value shows a rising tendency while EVA’s decreases, it is affirmed that sample companies did not create value but rather they did increase their capitalization value, which suggest a boost to commercial operations of companies’ shares with no link to value creation.

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