MARKET VALUE ADDED - MVA

Difference between the market value of a company and capital contributed to the firm by investors (pertaining both to bondholders and shareholders). It is the total capital claims held upon the firm plus the market value of debt and equity. To get market value added (MVA), subtract the firm’s market value and its invested capital. The higher the MVA, the better. A high MVA indicates the firm has substantial wealth for its bondholders but a low MVA means the company has destroyed value.