Market value added compares the market value assigned to capital with the capital invested.
MVA Calculator
Results
Current market value
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Market value added (MVA)
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Table of Contents
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What is MVA Calculator?
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How to Use This Calculator
- Enter or select Current share price, Capital invested, Shares outstanding.
- Check the unit beside each measurement. For a percentage or rate, use the scale and time period stated in the form.
- Choose Calculate, then compare the output with the formula and example below. If you change a value or option, calculate again to update the result.
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Formula Used
Equity market value = current share price × shares outstanding; compare with invested capital.
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Variables Explained
| Input | What it means |
|---|---|
| Current share price | The stated purchase or selling amount, in the same currency as the related costs. |
| Capital invested | Use the measured or stated value for this item, with the unit or category shown beside the field. |
| Shares outstanding | Use the measured or stated value for this item, with the unit or category shown beside the field. |
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Worked Example
1 million shares at 12 imply 12 million of equity market value; against 8 million invested, the gap is 4 million.
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Why Use This Calculator?
Compare the result with the underlying statement, budget or proposed transaction. It is most useful when every amount uses the same reporting period and the same accounting definition.
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Common Mistakes
- Equity-only and enterprise-wide definitions differ. Match the capital base to the market value being compared.
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Frequently Asked Questions
Should I use monthly or annual figures?
Use one consistent period for every amount and rate in the relationship. If a form specifies an annual rate or a monthly amount, follow that label rather than mixing time periods.
Does the result include fees and tax?
Only the costs and taxes represented by the inputs and formula are included. A real transaction can include other charges, so compare the estimate with the underlying agreement or statement.
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