Value added

Value added has several meanings depending on the context. In economics it is a concept of increasing the value of a product at each stage of production or supply. Value added per unit of capital can be worked out by deducting the price of inputs such as materials from the total costs of production. In investment terms value added measures the risk adjusted return from an investment strategy calculated by subtracting the return generated from the benchmark from that generated by the strategy. In marketing terms this refers to the additional features or benefits companies add to their products or services to give them a competitive advantage.

This definition is for general information purposes only