EVE is measured by moving rates by several amounts, such as 100bp or 200bp, and recalculating present values as the cash flow paths change. Under the Basel rules for interest rate risk in the banking book, the fall in EVE after an interest rate shock (ΔEVE) is compared with capital.
It is treated as a measure of longer-term effects, in contrast to a measure of how interest income changes over about the next year. Deposit cash flows are estimated from assumptions about customers, so the result depends on those assumptions.