MVA Calculator

Calculate Market Value Added (MVA) to measure company value creation. Analyze shareholder wealth creation and evaluate corporate performance.

✓ Value Creation Analysis ✓ Shareholder Wealth ✓ Corporate Performance

MVA Calculator

Market Value Information

Current market capitalization

Total market value of debt

Capital Invested

Total capital invested by shareholders and creditors

Shareholders' equity from balance sheet

Additional Metrics (Optional)

Total shares outstanding

Current market price per share

Total annual revenue

Annual net income

MVA Formula

Market Value Added calculation

MVA Formula:

MVA = Market Value - Capital Invested
Where: Market Value = Market Value of Equity + Market Value of Debt

Company Examples

Value Creator
High MVA, strong performance
Value Neutral
MVA near zero
Value Destroyer
Negative MVA

MVA Interpretation

Positive MVA: Value creation
Zero MVA: Break-even performance
Negative MVA: Value destruction
Higher MVA: Better management

Related Metrics

📊 EVA: Economic Value Added
💰 ROE: Return on Equity
📈 ROIC: Return on Invested Capital
🎯 P/B Ratio: Price-to-Book ratio
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Understanding MVA

Market Value Added (MVA) measures the difference between the current market value of a company and the capital invested by shareholders and creditors. It indicates how much value management has created or destroyed.

  • Value Creation: Positive MVA indicates value creation
  • Management Performance: Measures management effectiveness
  • Shareholder Wealth: Direct impact on shareholder returns
  • Long-term Focus: Cumulative performance measure

MVA Applications

Performance Evaluation

Assess management's ability to create shareholder value.

Investment Decisions

Compare companies and investment opportunities.

Strategic Planning

Guide strategic decisions and resource allocation.

Compensation

Link executive compensation to value creation.