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| '''Market Value Added (MVA)''' is the difference between the current [[market value]] of a firm and the [[capital (economics)|capital]] contributed by [[investor]]s. 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.
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| The formula for MVA is:
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| :<math> MVA = V - K \, </math>
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| where:
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| * ''MVA'' is market value added
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| * ''V'' is the market value of the firm, including the value of the firm's [[Ownership equity|equity]] and [[debt]]
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| * ''K'' is the capital invested in the firm
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| MVA is the present value of a series of [[Economic value added|EVA]] values. MVA is economically equivalent to the traditional [[Net present value|NPV]] measure of worth for evaluating an after-tax cash flow profile of a project if the [[cost of capital]] is used for discounting.
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| ==References== | |
| * G. Bennett Stewart III, ''The Quest for Value'' (HarperCollins, 1991).
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| ==See also==
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| *[[Economic value added]]
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| *[[Enterprise value]]
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| *[[Financial modeling]]
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| *[[Net present value]]
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| *[[Residual Income Valuation]]
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| {{corporate finance and investment banking}}
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| [[Category:Financial markets]]
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| [[Category:Fundamental analysis]]
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| {{econ-stub}}
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Latest revision as of 20:31, 22 September 2014
Podiatrist Anton Lester from Sainte-Adele, has many pursuits which include caravaning, property developers in singapore and tutoring children. Identified some incredible locales having spent 9 weeks at Cistercian Abbey of Fontenay.
my website http://www.nabiljeffri.com/