Investor Glossary-value-addedInvestor Glossary-value-addedInvestor Glossary-value-addedInvestor Glossary-value-addedInsightful stock market charts - Click here
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z


The HTML to link to this page

Value-added is used in several ways to indicate an enhancement to a product or an entity. By one definition, value-added is the difference between the cost of materials purchased by a firm and the price at which it sells the goods that use those materials. In a related usage, a value-added tax, common in Europe, is a levy on goods or service based on the increase in price, or value-added, at each point of the production cycle. As a management technique, companies seek to provide additional value-added in their products as a way of distinguishing them from competitors; value-added in this sense is a means of avoiding commoditization and maintaining profit margins. Finally, economic value-added is used as a measuring rod in financial analysis. While variously calculated, economic value-added attempts to find how much more valuable a company is at the end of a period than it was at the start of it.

Rate this value-added definition...

Learn about investing with the Investor Glossary Term of the Day

Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.

Popular Terms: covered put, risk management, average price per share, deferred tax, dividends payable, retained earnings, 144a, 1031 exchange, diluted share, reverse mortgage, class C shares, inflation, Zero Cost Collar, FICO score, stock split, ex-dividend, quality assurance, in escrow, limit order, phantom income, annual return, 1035 exchange, APR, irrevocable trust, option premium, deferred revenue, VIX, Key Rate Duration, 401a, real GDP, EBITDA, LIBOR, margin rate, current ratio, stock market close, cancelled check, ex-dividend date, balance sheet, liquidity ratio, required rate of return, FTSE, labor relations, wholly-owned subsidiary, implied volatility, per diem, command economy, debt service coverage, open position, minority interest

Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use