Market Value Added (MVA)
Market Value Added (MVA) is a measure of a company’s financial performance that represents the difference between the current market value of a company (both its equity and its debt) and the total capital that has historically been invested in it. It is the market-priced counterpart to Economic Value Added (EVA): where EVA measures a single period’s excess return over the cost of capital, MVA reflects the market’s cumulative, forward-looking verdict on all of a company’s expected future EVA.
The formula is as follows:
\[\text{Market Value of Equity} = \text{Share Price} \cdot \text{Total Shares Outstanding}\] \[\text{Invested Capital} = \text{Total Equity} + \text{Total Debt}\] \[\text{MVA} = (\text{Market Value of Equity} + \text{Market Value of Debt}) - \text{Invested Capital}\]Also known as: MVA, market value added.
Market Value Added (MVA) in Python or via the MCP
Install the Finance Toolkit with:
pip install financetoolkit -U
Then call get_market_value_added as shown below.
from financetoolkit import Toolkit
toolkit = Toolkit(
["LLY", "JNJ", "MRK"],
api_key="FINANCIAL_MODELING_PREP_KEY",
start_date="2021-01-01",
end_date="2025-12-31",
)
toolkit.models.get_market_value_added().xs("Market Value Added", level=1)
Or, after setting up the Finance Toolkit MCP, ask:
How much market value did Eli Lilly, Johnson & Johnson and Merck add above their invested capital from 2021 to 2025?
Which returns:
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| JNJ | 3.88033e+11 | 3.9811e+11 | 3.23373e+11 | 2.84859e+11 | 4.31897e+11 |
| LLY | 2.56073e+11 | 3.37326e+11 | 5.20216e+11 | 6.89575e+11 | 9.49091e+11 |
| MRK | 1.63289e+11 | 2.38554e+11 | 2.37969e+11 | 2.11776e+11 | 2.20502e+11 |
Parameters
get_market_value_added accepts the following parameters.
| Parameter | Type | Description | Example |
|---|---|---|---|
diluted | bool | Whether to use diluted shares in the calculation. Defaults to True. | False |
rounding | int | The number of decimals to round the results to. Defaults to None. | 2 |
growth | bool | Whether to calculate the growth of the values. Defaults to False. | True |
lag | int | list[int] | The lag to use for the growth calculation. Defaults to 1. | 4 |
standardize | bool | Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False. | True |
trailing | int | None | The trailing period to use for the calculation. Defaults to None. | 4 |
show_columns | list[str] | None | List of columns to show in the results. If None, all columns will be shown. Defaults to None. | ["Invested Capital", "Market Value Added"] |