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).
Tue, 18 Nov 2014 17:58:28 -0800
It's a tiny drop in the total exports bucket, but BC Wood says the $48 million in sales at its “Global Buyers Mission” at Whistler this September is a record number, with more than half of attending buyers from Asian countries. “It's a snapshot of what ...
Wed, 12 Nov 2014 04:05:52 -0800
Turkiye Garanti Bankasi AS led the increase as the country's largest publicly traded bank by market value added 4.4 percent. The yield on two-year notes fell 10 basis points to 8.36 percent, the lowest since July 25. Brent crude retreated 1.1 percent ...
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, ...
Tue, 28 Oct 2014 09:07:30 -0700
Global fruit supplier Capespan has formed a venture in Turkey, the South Africa-based company's latest move in an emerging market. Capespan will hold a 50% stake in the venture, called Mayfresh, with managing partners Nese Coruk and Metehan Aslantas ...
Sat, 08 Nov 2014 23:17:25 -0800
Toronto-Dominion Bank (TSE:TD) the second-largest bank by market value added 0.2 percent to C55.99. TMX Group (TSE:X) fell 1.1 percent to C53.10 after the operator of Canada's biggest stock exchange reported a lower-than-expected third-quarter profit ...
Thu, 30 Oct 2014 02:33:45 -0700
Suncor Energy Inc. (TSE:SU), the nation's largest energy company by market value, added 0.8 percent to C39.31. Enbridge (TSE:ENB), Canada's largest pipeline company, slipped 0.3 percent to C53.09. MEG Energy (TSE:MEG) gained 1.6 percent to C28.59 ...
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 ...
The Globe and Mail
Mon, 15 Sep 2014 16:26:15 -0700
-A market value-added (MVA/MV) ratio that is positive to ensure the invested capital is working properly. (MVA is the total market value minus the capital that was invested in the company.) We evaluate the difference between the market value of the ...
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