How To Calculate Market Value Added?

Question

How To Calculate Market Value Added?

3 Answers

Answer Question

Answer 1

Date Price Old Currency Price New Currency Price Marker Holdings New Currency New Price
27 04 2010 99.2471 EUR 3.2927 SKK P 30,000,000 SKK 99.1964
24 02 2010 99.1043 EUR 3.2897 SKK P 30,000,000 SKK 98.8006
29 01 2010 99.2471 EUR 3.2944 SKK P 30,000,000 SKK 98.5189
25 11 2009 99.2471 EUR 3.2944 SKK P 30,000,000 SKK 98.3524
30 10 2009 98.2918 EUR 3.2627 SKK P 30,000,000 SKK 98.2918
30 09 2009 92.55 EUR 3.0721 SKK P 30,000,000 SKK 99.3357
31 08 2009 92.55 EUR 3.0721 SKK P 30,000,000 SKK 96.9765
31 07 2009 92.55 EUR 3.0721 SKK P 30,000,000 SKK 95.5075
23 06 2009 92.55 EUR 3.0721 SKK P 30,000,000 SKK 92.55

Answer 2

Calculate value added by firm x and y

closing stock of firm x 20
closing stock of firm y 15
opening stock of firm y 5
opening stock of firm x 5
sales by firm x 300
purchase by firm x from y 100
purchase by firm y from x 80
sales by firm y 250
import of raw material by firm x 50
export by firm y 30

Answer 3

The simple formula to calculate Market Value added is Market Value added = Market Value Capital – Capital Invested.

This value is the difference between the current market value of a company and the capital given by investors; this includes both shareholders and bondholders. If the value is higher, than the company has an added value, if it is lower, it has a lesser value. In short a MVA is the total of all capital that is held against the company which also includes the market value of debt and equity. If the value is higher then the shareholders are definitely profited. The value added should be higher than the firms' investors this could help investing in the market portfolio.