MVA vs EVA vs EV vs MVIC

Has anyone come up with an easy way to remember these?


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

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.

thanks for this!

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