What is the meaning of Market Value Addition?

 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.

*Formulas-

• 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

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