Shareholder Value Added (SVA)
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 Says:
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 |