What is 'Shareholder Value Added  SVA'
Shareholder value added (SVA) is a valuebased 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:
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BREAKING DOWN 'Shareholder Value Added  SVA'
Using the market value of the company, rather than the accountingbased value in the above calculation, will give the market value added to shareholders.
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Why is it beneficial to use Net Operating Profit After Tax to compare companies within ...
Understand why it's beneficial to use net operating profit after tax (NOPAT) to compare companies within the same industry ... Read Answer >> 
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