Analysis of Mva on Eva

7/24/2019 Analysis of Mva on Eva

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Vari

able

s

(MVA vs

othe

r

vari

able

s)

Tata Motors Maruti Suzuki Mahindra & Mahindra

EVA Regression Statistics

Multiple R0.1258024

58

R Square

0.0158262

58

Adjusted RSquare

0.312231656

Stadard !rror4".8##615

11

$bservatios 5

Regression Statistics

Multiple R

R Square

Adjusted R Square %0.161414063

Stadard !rror

$bservatios


Multiple R0.#8"385

1#2

R Square

0.623128

"5Adjusted RSquare

0.4"#505266

Stadard!rror

6.03#4355#2

$bservatios 5

Sale

sRegression Statistics

Multiple R

R SquareAdjusted R Square

Stadard !rror

$bservatios


Multiple R

R SquareAdjusted R Square

Stadard !rror

$bservatios


Multiple R 0.6006

R Square 0.360#Adjusted R Square 0.14##

Stadard !rror #.8628

$bservatios

EPS Regression Statistics

Multiple R 0.22680"8##

R Square 0.051442#2

Adjusted R Square %0.264#4304

Stadard !rror 38."0281365

$bservatios


Multiple R 0.8""53646

R Square 0.80"165843

Adjusted R Square 0.#4555445#

Stadard !rror 14354.2#625

$bservatios


Multiple R

R Square

Adjusted R Square

Stadard !rror

$bservatios

ROI Regression StatisticsMultiple R 0."124883

R Square0.8326348

Adjusted RSquare

0.#48"523

Stadard !rror14.618668


Multiple R0.0343#41

4#

R Square0.0011815

82

Adjusted RSquare

0.4"822#62#


Multiple R0.0"0"044

55

R Square0.0082636

Adjusted RSquare

0.48#6045


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$bservatiosStadard !rror

101#4.#5345

$bservatios

Stadard !rror5.80#60#8

$bservatios

ROE Regression Statistics

Multiple R

0.8034430

R Square0.6455208

Adjusted RSquare

0.4682812

Stadard !rror21.2#505#

$bservatios


Multiple R

0.0365805

R Square0.0013381

Adjusted RSquare

0.4"#""2#

Stadard !rror101#3."56

$bservatios


Multiple R

0.##883052

R Square0.6065#6""

Adjusted RSquare 0.4#5435""

Stadard !rror6.1685"130

$bservatios

&he i'portat variables that 'ost a(e)t the MVA have bee 'etioed above. *as

)a be observed +ro' the e,)el sheets-.

It is found that more the alue of R s!uare" better the de#enden$% on

MVA

ata aal/sis is doe b/ usi Multiple iear Reressio hi)h is used to des)ribe

the deree o+ )orrelatio betee idepedet variables ith the depedet

variable ad is e,pressed ith var/i derees o+ relatioship )oe)iet o+

deter'iatio used to 'easure ho bi the idepedet variables )a e,plai the

depedet variable.

'h% EVA has hih $orrelation ith MVA i )ase Mahidra ad Mahidra

MVA is a absolute 'easure ad 'aret%to%boo ratio is a relative 'easure. 7+ MVA

is positive that 'eas that 'aret%to%boo ratio is 'ore tha oe. eative MVA

'eas 'aret%to%boo ratio less tha oe. 7+ a )o'pa/9s rate o+ retur e,)eeds its

)ost o+ )apital the )o'pa/ ill sell o the sto) 'arets ith pre'iu' )o'pared

to the oriial )apital *has positive MVA-. $ the other had )o'paies that have

rate o+ retur s'aller tha their )ost o+ )apital sell ith dis)out )o'pared to the

oriial )apital ivested i )o'pa/.

:oever +or )o'paies ith a eative !VA the asso)iatio be)o'es less obvious

be)ause o+ the i)reased probabilit/ o+ liquidatio or a)quisitio hi)h sets a loer

li'it o the 'aret value o+ these )o'paies.

7 thi that si)e the pri)iple obje)tive is to 'a,i'i;e shareholder value )reatio

the best a/ to 'a,i'i;e MVA is to 'a,i'i;e !VA.


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'h% !


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Analysis of Mva on Eva

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