Shareholder Value Added - SVA

What Does Shareholder Value Added - SVA Mean?
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:

Investopedia explains Shareholder Value Added - SVA
Using the market value of the company, rather than the accounting-based value in the above calculation, will give the market value added to shareholders.

Related Terms

Cost Of Capital
Economic Value Added - EVA
Market Value Added - MVA
Net Operating Profit After Tax - NOPAT
Return On New Invested Capital - RONIC
Shareholder
Unlevered Cost Of Capital
Weighted Average Cost Of Capital - WACC
More Related Terms

Related Links

Knowing Your Rights As A Shareholder - We delve into common stock owners' privileges and how to be vigilant in monitoring a company.
Why Do Companies Care About Their Stock Prices? - Read on to learn more about the the nature of stocks and the true meaning of ownership.
Who is responsible for protecting and managing shareholders' interests?

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