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.
The formula for MVA is:
- 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).
Mon, 22 Jun 2015 17:19:08 -0700
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Proactive Investors USA & Canada
Proactive Investors USA & Canada
Wed, 24 Jun 2015 10:15:00 -0700
The materials sub-index, which includes mining shares, gained 0.5 percent even as gold edged lower. Goldcorp (TSE:G), Canada's largest gold miner by market value, added 2.3 percent to C$20.93. Barrick Gold (TSE:ABX), the second-largest, inched up 0.1 ...
Fri, 12 Jun 2015 14:33:45 -0700
Focus Graphite is devoting all resources to achieve its objective to put Lac Knife into production, and then to bring to market value-added products for the Lithium-ion battery sector and we cannot accept to let any distraction interfere with this ...
Wed, 17 Jun 2015 14:45:00 -0700
It can also be defined as a market-focused collaboration among different stakeholders who produce and market value-added products. Value chain analysis is essential to an understanding of markets, their relationships, the participation of different ...
PR Newswire (press release)
Thu, 28 Aug 2014 03:30:00 -0700
Companies active in the mobile VAS market (value added services) and discussed in this report include America Movil, Apple, AT&T, BlackBerry, CanvasM Technology, Comviva Technology, Google, InMobi, KongZhong, OnMobile, One97 Communications, ...
Mon, 17 Dec 2012 08:40:37 -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 ...
The Globe and Mail
Mon, 08 Dec 2014 16:24:04 -0800
Market value added divided by market value (MVA/MV), a ratio that helps determine whether the invested capital is working properly. The market value-added is the difference between the market value of a company and the capital that was invested in it.
Seeking Alpha (registration)
Tue, 10 Feb 2015 01:22:30 -0800
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...)The author wrote this article themselves, and it expresses their own opinions. The author is not receiving ...
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