Market Value Added (MVA)

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Definition: Market Value Added (MVA)

Company’s market value added is the concept used to calculate the growth that the company has made during its operations. It is calculated by subtracting the market capitalization of the company from the capital contributed by the company’s shareholders.

MVA = Market capitalization – Capital invested.

For example: If a company X has 10000 shares of market value of 10$ each, the total market capitalization of the company X will be 10000*10$= 100000$ and the total capital invested by the shareholders of the company is 50000$, then the MVA of the company will be 100000$ - 50000$ = 50000$.

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