Shareholder Value Added


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Shareholder Value Added

The value of a company to its stockholders. That is, the SVA measures whether or not it is worth the expense for an investor to buy stock in a company. It is calculated by taking the net operating profit after taxes and subtracting the cost of capital. See also: Market Value Added, Economic Value Added.
References in periodicals archive ?
Shareholder Value Added is one of the value based performance measures and helps to find out the value that accrues to the shareholders.
To analyse the Shareholder Value Added Economic Value Added and Market Value Added of select manufacturing companies included in BSE 100 Index.
Shareholder return is the shareholder value added in one year, divided by the equity market value at the beginning of the year.
This simple idea turns out to not be so simple to implement and has spawned a cottage industry in shareholder value analysis techniques such as shareholder value added (SVA), cashflow return on investment (CFROI), ValueBuilder, and economic value added (EVA).