Analysis of Mva on Eva

download Analysis of Mva on Eva

of 4

Transcript of Analysis of Mva on Eva

  • 7/24/2019 Analysis of Mva on Eva

    1/4

    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

    Regression Statistics

    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

    Regression Statistics

    Multiple R

    R SquareAdjusted R Square

    Stadard !rror

    $bservatios

    Regression Statistics

    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

    Regression Statistics

    Multiple R 0.8""53646

    R Square 0.80"165843

    Adjusted R Square 0.#4555445#

    Stadard !rror 14354.2#625

    $bservatios

    Regression Statistics

    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

    Regression Statistics

    Multiple R0.0343#41

    4#

    R Square0.0011815

    82

    Adjusted RSquare

    0.4"822#62#

    Regression Statistics

    Multiple R0.0"0"044

    55

    R Square0.0082636

    Adjusted RSquare

    0.48#6045

  • 7/24/2019 Analysis of Mva on Eva

    2/4

    $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

    Regression Statistics

    Multiple R

    0.0365805

    R Square0.0013381

    Adjusted RSquare

    0.4"#""2#

    Stadard !rror101#3."56

    $bservatios

    Regression Statistics

    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.

  • 7/24/2019 Analysis of Mva on Eva

    3/4

    'h% !

  • 7/24/2019 Analysis of Mva on Eva

    4/4