Compute market value added: market value of the firm minus invested capital.
Please do not make financial decisions based on these results.
What is the MVA Calculator?
Compute market value added: market value of the firm minus invested capital. To use the MVA Calculator, enter market value of equity, market value of debt, invested capital; it returns market value added, market value of firm, and shows them instantly as you type.
Where the MVA Calculator fits
Compute market value added: market value of the firm minus invested capital. The main figure it returns is the Market value added, worked out from the values you enter.
It belongs with the other investment tools. If you are comparing options or checking a result from another angle, try the Treynor Ratio Calculator, MIRR Calculator - Modified Internal Rate of Return or the Moving Average Calculator.
How to use the MVA Calculator
- Fill in the fields. You will need Market value of equity ($), Market value of debt ($), Invested capital ($). Use a rate of return you consider realistic; small changes compound into large differences. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Market value added, and the cards below show Market value of firm. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the MVA Calculator using the default values shown in the calculator above:
Inputs
| Market value of equity ($) | 9,000,000 |
|---|---|
| Market value of debt ($) | 3,000,000 |
| Invested capital ($) | 8,500,000 |
Results
| Market value added | $3,500,000.00 |
|---|---|
| Market value of firm | $12,000,000.00 |
With these inputs the calculator returns Market value added: $3,500,000.00. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Market value of equity ($) from 9,000,000 to 10,800,000 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Market value added | $3,500,000.00 | $5,300,000.00 | +51.4% |
| Market value of firm | $12,000,000.00 | $13,800,000.00 | +15% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the MVA Calculator reports Market value added and market value of firm. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. Investment returns are not guaranteed. The result shows what the numbers you enter would produce, not what the market will do. It is for information, not financial, tax or legal advice.
Frequently asked questions
What does a positive MVA mean?
Management has created more value than the capital investors put in.
What rate of return should I assume?
There is no guaranteed rate. Test a range of conservative and optimistic rates, and remember that fees and inflation reduce your real return.
Are investment returns guaranteed?
No. Real returns vary. Use these tools to compare scenarios, not to predict results.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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