MVA vs EVA vs EV vs MVIC

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kzacca01

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Has anyone come up with an easy way to remember these?
EVA = NOPAT -$WACC
EV = MV of firm assets - Cash and short term investments
MVA = PV of Economic Income
MVIC = MV of capital - BV of capital
Is this right?!?
 
Uhm I *think* that’s off.
EP = Nopat - $WACC (This is for sure)
EVA (in one section = EP, and in one section = PV of the sum of EPs) - use logic to see which one
MVA = Market Value of Debt + Equity - BV of debt + Equity
MVIC = market value of debt + equity
 
kzacca01 wrote:
MVA = PV of Economic Income profit = MV of the firm - BV of the firm (approximation)
MVIC = MV of capital debt - BV of capital MV of Debt + MV of Equity
Click to expand...
 
I think in Sum, EVA = MVA which is the sum of PV OF EP. (Which also equals MVIC - BV due to logic below)
You have the BV and Market value. The company creates the additional over the book value through EP or individual EVAs each year.
 
EP = EVA is a component of MVA
In fact, MVA is PV of summations of all EP or EVA discounted by WACC.
EVA and MVA are not the same.
 
The PV of all the EP is the MVA.
The MVA is also MVIC minus Invested Capital.
Invested Capital + MVA= Value of the Firm
 
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