120 likes | 530 Views
Market Value Added (MVA). MVA Market Value Added. MV. Prem. over Book. MVA. MVA. RE. Econ. Book Value. EBV. E. IC. CSE. D. MVA Market Value Added. MV. MVA. IC. MVA Market Value Added. MV. MVA. E. IC. D. MVA Market Value Added. MV. MVA. RE. E. IC. CSE. D.
E N D
MVA Market Value Added MV Prem. over Book MVA MVA RE Econ. Book Value EBV E IC CSE D
MVA Market Value Added MV MVA IC
MVA Market Value Added MV MVA E IC D
MVA Market Value Added MV MVA RE E IC CSE D
MVA Market Value Added MV MVA MVA RE EBV E IC CSE D
MVA Market Value Added MV Prem. over Book MVA MVA RE Econ. Book Value EBV E IC CSE D
MVA Market Value Added MV FGV MVA COV Future Growth Value Current Operations Value IC
MVA Components • Invested capital • Level • Velocity • Current operations value (COV) • Discounted stream of returns (EVA) • Especially for mature businesses • Future growth value (FGV) • Internal / external • “In the money” or “out of” • Real Options EVA & Strategy , Stern Stewart, April 2000