How this calculator works
This tool uses an equity-only MVA definition: equity market capitalization less invested equity capital. Supply a market value directly or multiply price by the number of shares. Keep the capital basis consistent; subtracting total debt-and-equity capital from equity capitalization mixes measures. A negative MVA means market value is below the supplied invested capital.
Formula
Equity market value = share price × shares outstanding. Equity MVA = equity market value - equity capital invested.
Worked example
One million shares at $20 give $20 million market value. With $15 million invested equity capital, MVA is $5 million. A $6 million market value against $8 million invested capital gives -$2 million MVA.
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Frequently asked questions
Is MVA the same as economic value added?
No. MVA compares market value with capital; economic value added measures a period's profit after a capital charge.
Should I include debt?
This page uses equity only. An enterprise version must include both debt market value and the corresponding total invested capital.
Does a positive MVA prove a stock is underpriced?
No. It compares market value with a capital measure and does not establish intrinsic value.