Impact of Weighted Average Cost of Capital and Profitability on Economic Value Added of Firms in the Industrial Sector

In the context of financial decision-making, Economic Value Added (EVA) is a relevant indicator for assessing firms’ financial efficiency. This research aimed to determine the impact of the Weighted Average Cost of Capital (WACC) and profitability on the EVA of industrial sector companies in Peru. The study employed a quantitative, correlational–causal, non-experimental design. The sample included four industrial sector companies listed on the Lima Stock Exchange (BVL). Data were collected through document review and analyzed using panel data regression models with a longitudinal approach. The results show that Return on Equity (ROE) is a statistically significant predictor of EVA in all companies, indicating a direct relationship. In contrast, WACC showed a weak relationship with the variables studied. It is concluded that profitability shows a stronger and more consistent influence on EVA than WACC, although the impact of WACC varies across companies. However, the relationship between WACC, ROE, and EVA differs among companies. The model explains a moderate share of EVA variability (14.39% to 50.52%), suggesting that factors beyond WACC and profitability also contribute to value creation. These results provide both theoretical insights into financial performance metrics and practical guidance for managers in emerging markets.