Distinct 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 left over is basically 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 realted measure may help investors decide if this a business that is worthwhile investing on or there are other opportunities that are more lucrative eg. Fixed deposits or Debentures.

Other consultancy measures for Shareholder value are this to a lesser or greater extent: Economic Value Added | Market_value_added

Kay, J. (1993) Foundations of Corporate Success, Oxford: Oxford University Press.

Economics