Base market value

Base market value

The average market price of a group of securities at a specific time. Used for the purpose of indexing.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Base Market Value

1. See: Market average.

2. See: Base value.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Using the 12 years of data available, the CoreBrand team developed the algorithm to determine the base market value for any given company.
($millions) Base SCM Costs @ 8 % of Revenue $400.0 5% Reduction $20.0 Operating Profit $20.0 Taxes @ 40% $8.0 NOPAT $12.0 Capital $ - Cost of Capital 10% Capital Charge $ - Economic Profit $12.0 Base Economic Profit $14.0 Market Value Impact $467 Base Market Value $7,200 % Increase Market Value 6.5% The results show that for the average company in the S&P Industrials, the 5-percent reduction nearly doubles economic profit.
($millions) Increased Transportation Costs $5 Noncapital Inventory-Carrying Charge Reduction (10% of Change in Inventory) $10 Operating Profit $5 Taxes @ 40% $2 NOPAT Improvement $3 Base Inventory $500 20% Inventory Reduction $100 Capital $(100) Cost of Capital 10% Capital Charge $(10) Economic Profit Improvement $13.0 Base Economic Profit $14.0 Market Value Improvement $433 Base Market Value $7,200 % Increase Market Value 6.0 The results in the exhibit show that the solution lowers initial inventory by $100 million.