MVA [Market Value Addition]
- The market value is the difference between the current market value of the firm and the capital employed by the firm.
- MVA is simply the present value of all future.
- MVA= Market Value of capital employed- book value of capital employed
- MVA= Market Value of equity shares capital- book value of equity shareholders fund
- MVA= Market Capitalization – book value of owned fund
Market capitalization= MPS x Nos of equity shares
MPS= P/E Ratio x EPS