Used as a measure of shareholder value in the financial analysis of shares
This article relies largely or entirely on a single source. Relevant discussion may be found on the talk page. Please help improve this article by introducing citations to additional sources. Find sources: "Added value" – news · newspapers · books · scholar · JSTOR(June 2010)
Added value in financial analysis of shares is to be distinguished from value added. It is used as a measure of shareholder value, calculated using the formula:
Added Value = The selling price of a product - the cost of bought-in materials and components
Added Value can also be defined as the difference between a particular product's final selling price and the direct and indirect input used in making that particular product. Also it can be said to be the process of increasing the perceived value of the product in the eyes of the consumers (formally known as the value proposition).
The difference is profit for the firm and its shareholders after all the costs and taxes owed by the business have been paid for that financial year. Value added or any related measure may help investors decide if this is a business that is worthwhile investing on, or that there are other and better opportunities (fixed deposits, debentures).
production economics and financial analysis. Valueadded is distinguished from the accounting term addedvalue which measures only the financial profits...
Addedvalue in financial analysis of shares is to be distinguished from valueadded. It is used as a measure of shareholder value, calculated using the...
gross valueadded (GVA) is the measure of the value of goods and services produced in an area, industry or sector of an economy. "Gross valueadded is the...
of shareholder value include: Addedvalue Market valueadded Total shareholder return The firm's market valueadded, is the addedvalue an investment creates...
Market valueadded (MVA) is the difference between the current market value of a firm and the capital contributed by investors. If MVA is positive, the...
on the notion of value-added at the link (read: stage of production) level. The sum total of link-level value-added yields total value. The French Physiocrats'...
The European Union value-added tax (or EU VAT) is a valueadded tax on goods and services within the European Union (EU). The EU's institutions do not...
at Net ValueAdded accounting methods, which were held in low esteem by some Lean advocates, and high esteem by others. AddedvalueValueadded The Machine...
Cash valueadded (CVA) is a measure of business profitability defined as the EBITDA generated by the business, less tax, less its required return. The...
Contextual valueadded (CVA) is a statistic that was used by the government of the United Kingdom to assess the performance of schools. It was superseded...
present value Berle-Dodd debate Economic valueadded Enterprise value Financial modeling Flows to equity Internal rate of return Market valueadded Net present...
taxes, or value-added taxes. A value-added tax (VAT), or goods and services tax (GST), is a tax on exchanges. It is levied on the addedvalue that results...
A value-added tax identification number or VAT identification number (VATIN) is an identifier used in many countries, including the countries of the European...
In marketing, a company’s value proposition is the full mix of benefits or economic value which it promises to deliver to the current and future customers...
The ValueAdded Tax Act 1994 (c. 23) is a UK tax law, concerning taxation of goods and services that fall within the scope of ValueAdded Tax (VAT). It...
Global Information