Economic Value Added - Relationship To Market Value Added

Relationship To Market Value Added

The firm's market value added, or MVA, is the discounted sum (present value) of all future expected economic value added:

Note that MVA = PV of EVA.

More enlightening is that since MVA = NPV of Free cash flow (FCF) it follows therefore that the

NPV of FCF = PV of EVA;

since after all, EVA is simply the re-arrangement of the FCF formula.


Read more about this topic:  Economic Value Added

Famous quotes containing the words relationship to, relationship, market and/or added:

    Poetry is above all a concentration of the power of language, which is the power of our ultimate relationship to everything in the universe.
    Adrienne Rich (b. 1929)

    Henry David Thoreau, who never earned much of a living or sustained a relationship with any woman that wasn’t brotherly—who lived mostly under his parents’ roof ... who advocated one day’s work and six days “off” as the weekly round and was considered a bit of a fool in his hometown ... is probably the American writer who tells us best how to live comfortably with our most constant companion, ourselves.
    Edward Hoagland (b. 1932)

    I respect not his labors, his farm where everything has its price, who would carry the landscape, who would carry his God, to market, if he could get anything for him; who goes to market for his god as it is; on whose farm nothing grows free, whose fields bear no crops, whose meadows no flowers, whose trees no fruit, but dollars; who loves not the beauty of his fruits, whose fruits are not ripe for him till they are turned to dollars. Give me the poverty that enjoys true wealth.
    Henry David Thoreau (1817–1862)

    She was so overcome by the splendor of his achievement that she took him into the closet and selected a choice apple and delivered it to him, along with an improving lecture upon the added value and flavor a treat took to itself when it came without sin through virtuous effort. And while she closed with a Scriptural flourish, he “hooked” a doughnut.
    Mark Twain [Samuel Langhorne Clemens] (1835–1910)