Editing Economic value added (section)

== Market value added ==
The firm's [[market value added]], is the added value an investment creates for its shareholders over the total capital invested by them. MVA is the discounted sum (present value) of all future expected economic value added:

:<math> \text{MVA} = V - K_0 = \sum_{t=1}^\infty { \text{EVA}_t \over (1+c)^t }</math>

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.