Market Value Added

Finance

Calculate Market Value Added (MVA). Formula: MVA = Market Value of Equity - Invested Capital. Shows value created/destroyed over time.

Formula

MVA = Market Value - Invested Capital

MV=$1500M, IC=$1000M

Inputs
  • Market Value of Equity ($M): 1500
  • Invested Capital ($M): 1000

MVA = $500M (50% value created)

Frequently asked questions

Positive MVA?
Good; company created shareholder value
Negative MVA?
Value destroyed; market cap < invested capital