Shareholder Value Added - SVA
A value-based performance measure of a company's worth to shareholders. The basic calculation is net operating profit after tax (NOPAT) minus the cost of capital from the issuance of debt and equity, based on the company's weighted average cost of capital (WACC).
Investopedia Commentary
Using the market value of the company, rather than the accounting-based value in the above calculation, will give the market value added (MVA) to shareholders.
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See also: Cost of Capital, Economic Value Added - EVA, Market Value Added - MVA, Net Operating Profit After Tax - NOPAT, Shareholder, Weighted Average Cost Of Capital - WACC
Also spelled: SVA