digplanet beta 1: Athena
Share digplanet:

Agriculture

Applied sciences

Arts

Belief

Business

Chronology

Culture

Education

Environment

Geography

Health

History

Humanities

Language

Law

Life

Mathematics

Nature

People

Politics

Science

Society

Technology

Market value added (MVA) is the difference between the current market value of a firm and the capital contributed by investors. If MVA is positive, the firm has added value. If it is negative, the firm has destroyed value. The amount of value added needs to be greater than the firm's investors could have achieved investing in the market portfolio, adjusted for the leverage (beta coefficient) of the firm relative to the market.

Basic formula[edit]

The formula for MVA is:

 MVA = V - K

where:

  • MVA is market value added
  • V is the market value of the firm, including the value of the firm's equity and debt
  • K is the capital invested in the firm

MVA is the present value of a series of EVA values. MVA is economically equivalent to the traditional NPV measure of worth for evaluating an after-tax cash flow profile of a project if the cost of capital is used for discounting.

References[edit]

  • G. Bennett Stewart III, The Quest for Value (HarperCollins, 1991).

Original courtesy of Wikipedia: http://en.wikipedia.org/wiki/Market_value_added — Please support Wikipedia.
This page uses Creative Commons Licensed content from Wikipedia. A portion of the proceeds from advertising on Digplanet goes to supporting Wikipedia.

225 news items

 
Seeking Alpha (registration)
Mon, 23 Feb 2015 07:20:17 -0800

As shown in the following table, the creation or destruction of value is measured by calculating the market value added (MVA) over the past periods. Market value added will increase if value expands by more than the amount of new capital committed to ...

KATV

Arkansas Business Online
Mon, 23 Feb 2015 00:03:45 -0800

LITTLE ROCK - Specialty crop farmers will get a chance to learn how local produce buyers work directly with farmers during a workshop scheduled next month. The "Homegrown Profits 2015: Tapping in to Rising Markets" session is March 5 at the Arkansas ...
 
Bloomberg
Sun, 22 Feb 2015 16:19:38 -0800

Toyota Motor Corp., the world's biggest carmaker by market value, added 0.6 percent to 8,130 yen. Nissan Motor Co., which gets about 16 percent of sales from Europe, rose 1.5 percent to 1,224 yen. Terumo advanced 1.1 percent to 3,135 yen. The company ...
 
Seeking Alpha (registration)
Mon, 16 Feb 2015 10:11:15 -0800

As shown in the following table, the creation or destruction of value is measured by calculating the market value added. Market value added will increase if value expands by more than the amount of new capital committed to the business, and vice versa.
 
Bloomberg
Wed, 11 Feb 2015 16:19:42 -0800

Toyota Motor Corp., the world's biggest carmaker by market value, added 1.8 percent. Fanuc Corp. jumped to a record after activist investor Daniel Loeb's Third Point hedge fund said it invested in the robot maker. Sony Corp. soared 5.1 percent after ...
 
Business Standard
Mon, 23 Feb 2015 03:49:19 -0800

Toyota Motor Corp., the world's biggest carmaker by market value, added 0.6% to 8,130 yen. Nissan Motor Co., which gets about 16% of sales from Europe, rose 1.5% to 1,224 yen. Casio Computer Co shares advanced 5.9% to 2010 yen due to target price ...
 
Seeking Alpha (registration)
Wed, 25 Feb 2015 09:05:21 -0800

The total present value of EVA, or Market Value Added (MVA), is -$2.9B. Please don't be surprised by the negative number as Symantec still cannot generate a return on capital higher than its cost of capital from 2015 to 2024. The total equity fair ...
 
Seeking Alpha (registration)
Tue, 10 Feb 2015 01:22:30 -0800

Pfizer Inc. (NYSE:PFE) agreed to buy Hospira Inc. (NYSE:HSP), the biggest provider of injectable drugs, in a transaction valued at about $17 billion, adding an array of medicines and boosting its efforts to develop copies of biological drugs. Pfizer ...
Loading

Oops, we seem to be having trouble contacting Twitter

Support Wikipedia

A portion of the proceeds from advertising on Digplanet goes to supporting Wikipedia. Please add your support for Wikipedia!

Searchlight Group

Digplanet also receives support from Searchlight Group. Visit Searchlight