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
Install the Finance Toolkit with:
pip install financetoolkit -U
Then call get_market_value_added as shown below.
from financetoolkit import Toolkit
toolkit = Toolkit(["AAPL", "MSFT"], api_key="FINANCIAL_MODELING_PREP_KEY")
toolkit.models.get_market_value_added().loc["AAPL"]
Which returns:
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| Market Value of Equity | 2.92522e+12 | 2.08399e+12 | 3.00786e+12 | 3.83091e+12 | 4.06822e+12 |
| Market Value of Debt | 1.36522e+11 | 1.3248e+11 | 1.2393e+11 | 1.19059e+11 | 1.12377e+11 |
| Invested Capital | 1.93614e+11 | 1.91382e+11 | 1.84614e+11 | 1.81042e+11 | 1.8106e+11 |
| Market Value Added | 2.86813e+12 | 2.02509e+12 | 2.94718e+12 | 3.76893e+12 | 3.99954e+12 |
Parameters
The function accepts the following parameters:
- diluted (bool, optional): Whether to use diluted shares in the calculation. Defaults to True.
- rounding (int, optional): The number of decimals to round the results to. Defaults to None.
- growth (bool, optional): Whether to calculate the growth of the values. Defaults to False.
- lag (int | list[int], optional): The lag to use for the growth calculation. Defaults to 1.
- standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
- trailing (int | None, optional): The trailing period to use for the calculation. Defaults to None.
- show_columns (list[str] | None, optional): List of columns to show in the results. If None, all columns will be shown. Defaults to None.