Added value

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. It can also 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).

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. It can also 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).

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