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| (MVA).
| | People's Republic of China. |
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| The excess of the actual or theoretical market value of a firm over its book value.
| | == See also == |
| | | * [[PBOC]] |
| | | * [[Renminbi]] |
| '''Example'''
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| Using a simplified example, for an all-equity financed firm with an actual or theoretical market capitalisation of $130m and book value of equity $100m:
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| MVA = $130m - $100m
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| = $30m.
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| In practice a number of adjustments would be made both to the market values and to the book values used in the calculation of the MVA.
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| So in practice the assessment of MVA is both more complicated, and arguably more subjective, than the simple calculation illustrated above.
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| == See also ==
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| * [[Book value]]
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| * [[Economic value added]]
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| * [[Excess Return]]
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| * [[Market value]]
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| * [[Shareholder value]]
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Revision as of 14:20, 23 October 2012
People's Republic of China.
See also
