MVA Calculator (Market Value Added)

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Use "share price + shares" if you have live stock data. Use "direct" if you already have the market capitalisation figure.
Current market price of one ordinary share.
USD
Total number of issued ordinary shares in circulation.
shares
Market value of all interest-bearing debt (bonds, loans). Use book value if market prices are unavailable.
USD
The cumulative amount of capital shareholders and debt holders have injected into the business since inception (equity book value + total debt, or total assets minus non-interest-bearing current liabilities).
USD
Shareholders' equity from the balance sheet (total assets minus total liabilities). Used to compute the market-to-book equity spread.
USD
Market Value Added (MVA)Value creation
400,000,000USD

Total enterprise market value minus total invested capital

Total enterprise market value1,000,000,000USD
Market value of equity850,000,000USD
MVA as % of invested capital0.7%
MVA per share40USD
Market equity above book equity450,000,000USD
Value signalStrong value creation - management has grown the capital base significantly.
Enterprise market value1,000,000,000
Market Value Added400,000,000

This company has added $400,000,000 in market value above invested capital.

  • The company has created $400,000,000 in wealth above the capital invested, meaning every dollar put in has grown to $1.67 in enterprise market value.
  • MVA as a percentage of invested capital is 66.7%, which indicates the market is pricing in future returns above the cost of capital.
  • On a per-share basis, MVA is $40.00, representing the value premium (or discount) embedded in each share relative to the pro-rata invested capital.
  • The market prices equity at $450,000,000 above its book value, a market-to-book premium that reflects investor expectations about future profitability.

Next stepPair MVA with EVA (Economic Value Added) to confirm whether current operating performance is sustaining this wealth creation, not just historical investment.

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