Market value added, MVA (See Chapter 19 of the Vernimmen) Market value added represents the difference between the value of equity and net debt, and the book value of capital employed. With net debt often taken at its book value, the MVA becomes the difference between the market capitalisation and the book value of shareholders’ equity. MVA is expressed in currency units. Market value added is one of the market indicators of value creation. MVA, and particularly any change in MVA, constitutes a more relevant measure of value than just developments in share price. MVA assesses increase in value with regard to the capital invested. Market value added, MVA (See Chapter 19 of the Vernimmen) Market value added represents the difference between the value of equity and net debt, and the book value of capital employed. With net debt often taken at its book value, the MVA becomes the difference between the market capitalisation and the book value of shareholders’ equity. MVA is expressed in currency units. Market value added is one of the market indicators of value creation. MVA, and particularly any change in MVA, constitutes a more relevant measure of value than just developments in share price. MVA assesses increase in value with regard to the capital invested. See all terms in the dictionary of finance To know more about it, look at what we have already written on this subject :

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Definitions of terms begining with the same letter as "Market value added, MVA" :

MBI MBO MIRR MLA MOU MTN MTN programme MVA Management buy-in Management buy-out, MBO Management fee Manager, managing bank Managing bank Mandated lead arranger, MLA Mandatory convertible bonds Mandatory convertible preferred stock Mandatory offer Margin Margin analysis Margin call Marginal rate of return Market Market capitalisation Market expansion Market financing Market growth Market in equilibrium Market indicators of value creation

Market maker Market multiples Market plane Market portfolio Market premium Market return Market risk Market risk premium Market risk – strategic positioning of the company Market share Market value Market value added, MVA Market-based economy Marketable securities Mass production Master credit agreement Matching hypothesis Matching principle Material adverse change clause Maturity Maturity mismatch McDonough ratios Medium term note, MTN Memorandum of understanding, MOU Merger Mezzanine debt Mezzaniner Micro-Cap

Microcredit Microfinance Mid-Cap Mimicry Minimum-price offering Minority discount Minority interests Minority shareholder Minority value Model risk Modified IRR Modified duration Modified internal rate of return, Modified IRR, MIRR Modigliani-Miller theorem Momentum Monetary items Money market funds Money-market funds Monte Carlo simulation Moral hazard Mudharaba Multiple voting shares Multiple(s) Multiples method Multiplier effect Murabaha Musharaka