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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


  • 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.


  • 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.
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224 news items

The Hindu
Mon, 23 Nov 2015 16:00:00 -0800

The main purpose behind forming the company is to produce and market value-added products, including fibres, by ourselves, he said. Banana grows all through the year in cycles in Mettupalayam-Sirumugai, Erode, Tiruchi and Tirunelveli regions, he said.
Business Standard
Mon, 17 Dec 2012 07:33:45 -0800

The Coconut Development Board (CDB) is planning to explore markets for seven coconut-based products through 63 cities under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). The basket includes packaged tender coconut water, virgin ...
Wall Street Journal (blog)
Mon, 26 Oct 2015 03:25:31 -0700

Smaller stocks haven't seen anything near the rebound logged by the market heavyweights, highlighted by the more than $80 billion of combined market value added Friday by Alphabet Inc., Microsoft Corp. and Amazon.com Inc. Often—especially in the early ...

Bloomberg View

Bloomberg View
Wed, 05 Aug 2015 14:31:55 -0700

Other academics suggest replacing total shareholder return as the main performance measurement -- about 60 percent of company boards use it now --- with a "market-value added" gauge. One way to do this is to base compensation on the difference ...


Mon, 07 Sep 2015 23:39:00 -0700

Naspers Ltd., Africa's largest company by market value, added 3.8 percent in Johannesburg. PGE SA and Tauron Polska Energia SA each climbed at least 4.1 percent in Warsaw as the government backed off from a plan to push Polish utilities to invest cash ...
Tue, 14 Jul 2015 17:21:29 -0700

Toyota Motor Corp., the world's largest carmaker by market value, added 0.9 percent as exporters gained. Takashimaya Co. jumped 4.2 percent after Mizuho Financial Group Inc. raised its rating on the department-store operator. Toei Co. slumped 1.4 ...
Mon, 06 Jul 2015 17:18:47 -0700

Japanese stocks rebounded after investors in the U.S. shrugged off the threat posed by Greece's rejection of austerity measures. Toyota Motor Corp., the world's biggest carmaker by market value, added 0.6 percent. Parcel-delivery company Yamato ...
New Zealand Herald
Fri, 23 Oct 2015 08:56:15 -0700

Quin said Westland's investment in added-value plant and technology in the past few years was already reducing its reliance on the highly volatile bulk commodities market. Value-added products contributed 19.6c a kg/MS to the 2014/2015 payout and Quin ...

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