Shareholder Value Added - SVA

Shareholder Value Added - SVA
A value-based performance measure of a company's worth to shareholders. The basic calculation is net operating profit after tax (NOPAT) minus the cost of capital from the issuance of debt and equity, based on the company's weighted average cost of capital:

Shareholder Value Added (SVA)

Using the market value of the company, rather than the accounting-based value in the above calculation, will give the market value added to shareholders.


Investment dictionary. . 2012.

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  • shareholder value added — ( SVA) A financial performance metric that attempts to measure the benefit created for a firm s capital holders. It is expressed in dollar terms for a period not as a percentage return ratio. SVA is an adjusted value for after tax earnings, for a …   Financial and business terms

  • economic value added — ( EVA®) See shareholder value added ( SVA). Since EVA is a registered mark, the phrase shareholder value added, or SVA, is often used instead. American Banker Glossary ( EVA) …   Financial and business terms

  • SVA — shareholder value added (SVA) A financial performance metric that attempts to measure the benefit created for a firm s capital holders. It is expressed in dollar terms for a period not as a percentage return ratio. SVA is an adjusted value for… …   Financial and business terms

  • value based management — ( VBM) A structured approach to measure the performance of a firm s unit managers or products in terms of the net benefit they provide to shareholders. Usually the application of shareholder value added ( SVA) metrics. See shareholder value added …   Financial and business terms

  • SVA — is a three letter acronym that can stand for* SVA is the ICAO code for Saudi Arabian Airlines * School of Visual Arts * Shareholder value added * Sandia View Academy, a K 12 school in Corrales, New Mexico. * Special visceral afferent * Subject… …   Wikipedia

  • VBM — value based management (VBM) A structured approach to measure the performance of a firm s unit managers or products in terms of the net benefit they provide to shareholders. Usually the application of shareholder value added ( SVA) metrics. See… …   Financial and business terms

  • EVA — economic value added (EVA®) See shareholder value added ( SVA). Since EVA is a registered mark, the phrase shareholder value added, or SVA, is often used instead. American Banker Glossary ( economic value added) A method of …   Financial and business terms

  • EVA® — economic value added ( EVA®) See shareholder value added ( SVA). Since EVA is a registered mark, the phrase shareholder value added, or SVA, is often used instead. American Banker Glossary …   Financial and business terms

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