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What is difference between EVA (Economic Value added) and MVA (Market Value Added) in finance?

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Question added by Anayatullah Tahir , Accounting Consultant , Various
Date Posted: 2014/03/27
Niranjan Singh
by Niranjan Singh , NA , NA (Private Practice)

MVA is the difference between the current market value of the firm and the capital contributed by investors.

 

EVA is an estimate of a firm's economic profit. i.e., the profit earned by the firm less the cost of financing the firm's capital

Mukkaram Siddique
by Mukkaram Siddique , Finance, Management & Stocks , Amazon Foods Saudi Arabia

Enough said by Niranja Singh. 

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