A positive MVA means management has turned investors’ capital into a business worth more than they put in. MVA is the market’s view of the present value of all future economic value added (EVA).
How to use the MVA Calculator – Market Value Added
- Current share price
- Shares outstanding
- Capital invested
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the current share price, the shares outstanding and the total capital invested (equity and debt or book equity).
Tips
- Use the nominal annual rate and pick the compounding frequency your bank or broker states.
- Small differences in return or fees compound into large differences over decades.
- Run the calculation with a cautious, a central and an optimistic return to see the range of outcomes.
- Past returns do not guarantee future returns – nothing here is investment advice.
Common mistakes to avoid
- Comparing an APR with an APY or effective rate.
- Ignoring inflation, taxes and fees when judging a real return.
- Entering a percentage as a decimal (5 instead of 0.05 is correct here).
Inputs explained
| Field | What to enter |
|---|---|
| Current share price | Amount in your currency |
| Shares outstanding | A number |
| Capital invested | Amount in your currency |
What each result means
- Current market value = [Current share price]×[Shares outstanding]
- Market value added (MVA) = [Current market value] – [Capital invested]
- Market value to capital = [Current market value]÷[Capital invested]
Example values
How the main result changes when Current share price changes and everything else stays at the example values above:
| Current share price | Market value added (MVA) |
|---|---|
| 37.5 | -150,000,000 |
| 56.25 | 225,000,000 |
| 75 | 600,000,000 |
| 93.75 | 975,000,000 |
| 112.5 | 1,350,000,000 |
| 150 | 2,100,000,000 |
Formula
Market value = share price × shares outstandingMVA = market value − capital investedWorked example
Inputs — Current share price: $75; Shares outstanding: 20,000,000; Capital invested: $900,000,000.
Results — Current market value = $1,500,000,000.00; Market value added (MVA) = $600,000,000.00; Market value to capital = 1.67 ×.
Frequently asked questions
What is market value added?
Market value of a company minus the capital invested in it.
What does a negative MVA mean?
The company has destroyed value – it is worth less than invested.
How is MVA related to EVA?
MVA equals the present value of expected future EVA.
What formula does the MVA Calculator – Market Value Added use?
Market value = share price × shares outstanding.