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
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