- Added value
Added value in financial analysis of shares is to be distinguished from
value added. Used as a measure of shareholder value, calculated using the formula:
:Added Value = Sales - Purchases - Labour Costs - Capital Costs
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.
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 a business that is worthwhile investing on, or that there are other and better opportunities (
fixed deposits, debentures).
For other consultancy measures for shareholder value, see
Economic Value Added
Market value added.
*Kay, J. (1993) "Foundations of Corporate Success", Oxford: Oxford University Press.
Wikimedia Foundation. 2010.
Look at other dictionaries:
added value — ➔ value1 * * * added value UK US noun [U] (also value added) ► ECONOMICS an increase in the value of a resource, product, or service as the result of a particular process: »They want as much of the added value as possible from their exploited… … Financial and business terms
added value — /ˌædɪd vælju:/ noun an amount added to the value of a product or service, being the difference between its cost and the amount received when it is sold. Wages, taxes, etc. are deducted from the added value to give the profit. ⇒ Value Added Tax … Marketing dictionary in english
added value — /ˌædɪd vælju:/ noun an amount added to the value of a product or service, equal to the difference between its cost and the amount received when it is sold. Wages, taxes, etc. are deducted from the added value to give the profit. ⇒ Value Added Tax … Dictionary of banking and finance
added value — N UNCOUNT In marketing, added value is something which makes a product more appealing to customers … English dictionary
added value — additional value, additional worth, worth which has been added on … English contemporary dictionary
added value — noun another term for value added … English new terms dictionary
added value — See value added … Big dictionary of business and management
added value — /ædəd ˈvælju/ (say aduhd valyooh) noun something added to a product or process which increases its value … Australian English dictionary
added value — noun : value added … Useful english dictionary
added-value — processing of fish before export … Dictionary of ichthyology