Market Value Added (MVA)

Market Value Added (MVA) - Market Value Added is the difference between the current marketplace value of a firm and the capital contributed by investors. If market value added is a positive, the corporation has added value. If the market value added is a negative, the corporation has destroyed value. The amount of value added needs to be greater than the corporations investors could have achieved investing in the market portfolio, adjusted for the leverage, beta coefficient, of the firm relative to the market. MVA is the attendant value of a series of EVA values. MVA is economically correspondent to the traditional NPV measure.