MVA ,Eva and Enterprise Value

[Kirtika]

Hi Everyone,
If someone could pls help me with Market Value added (MVA ),EVA and enterprise value formulae.
Rgds,

 

[JJ1337]

Economic Profit (EP or EVA) = EBIT(1-tax rate) - WACC x Capital
MVA = for all t=1 to N, sum (EP in t / (1+WACC)^t)
Enterprise Value = Value of the firm (equity + debt) = EBIT(1-tax rate) / WACC if there is no growth

 

[Saleh.alabdali]

ENTERPRSIE VALUE = Market value of eauity + Market value of debt + mionrity interest - cash & short term investment.
To understand EV let’s take this example:
U purchase a home(Equity), this home bear some power, water bills (Debt), also when U purchased this home U purchased it with furntures, so U can sell those furntures (cash & short term investment).

 

[Kirtika]

Thanks