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Value based financial performance measures like Economic value added (EVA), Shareholder value added (SVA) has attracted the attention of investors, policy makers and researchers in the recent time due to their superiority and ability to reflect the true valuation of the companies. Investor’s in developing countries are shifting their attention from traditional mandated corporate performance measures like NOPAT, EPS to value based mainly to EVA in while analyzing the performance of the companies and making investment strategy. The main objective of this study is to examine whether Economic Value Added (EVA) can be used as a tool of performance measures while investing in Indian market and provide evidence about its superiority as a financial performance measure as compared to conventional performance measures in Indian companies. To achieve this, performance of the Indian listed manufacturing companies is compared with traditional mandated corporate financial performance measures used in investment analysis. Further, the present study ranks the performance Indian companies on the basis of various performance measures and suggests to investors which performance measures should be used to analyze the companies in order to make better investment decision. The results of our study revels that investor should use EVA alongwith traditional measures in firm valuation and making investment strategy