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CAP MVA

What does MVA stand for?
MVA is closely related to the concept of economic value added (EVA), representing the net present value (NPV) of a series of EVA values. MVAs are representations of value created by the actions and investments of a company's management.
How is MVA calculated?
In other words, it is the market value of debt and equity minus all capital claims held against the company. It is calculated as: where MVA is the market value added of the firm, V is the market value of the firm, including the value of the firm's equity and debt (its enterprise value ), and K is the total amount of capital invested in the firm.
What is market value added (MVA)?
Market value added (MVA) is a calculation that shows the difference between the market value of a company and the capital contributed by all investors, both bondholders and shareholders. In other words, it is the market value of debt and equity minus all capital claims held against the company. It is calculated as:
What does a low MVA mean?
A low MVA can mean the value of management’s actions and investments is less than the value of the capital contributed by shareholders. A negative MVA means the management's actions and investments have diminished and reversed the value of capital contributed by shareholders.

What does MVA stand for?