Market Value Added (MVA)
Market value added (MVA) is the difference between a firm fair value and its invested capital. MVA is a measure of the value a company has created in excess of the resources already committed to the enterprise.
MVA
Abiomed Inc., MVA calculation
US$ in thousands
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Abiomed
- The market value exhibits significant fluctuations over the periods examined. It increased sharply from approximately 5.74 billion USD in 2017 to a peak of about 17.2 billion USD in 2018. Following this peak, the value declined notably to around 8.38 billion USD in 2020, before partially recovering to approximately 12.07 billion USD in 2021. The value then decreased again to nearly 9.91 billion USD in 2022. This pattern suggests a high volatility in market perception or external market conditions affecting the company’s valuation.
- Invested capital
- Invested capital has shown a general upward trend throughout the period, growing from roughly 227 million USD in 2017 to a high of nearly 738 million USD in 2021. There was a slight decline in 2022, with invested capital decreasing to about 693 million USD. This progression indicates ongoing capital investment in the business with some retrenchment in the latest period.
- Market value added (MVA)
- Market value added, representing the difference between market value and invested capital, follows a pattern similar to the market value. It rose sharply from approximately 5.51 billion USD in 2017 to a peak of over 16.9 billion USD in 2018, then decreased progressively in subsequent years to about 7.78 billion USD in 2020. A recovery is observed in 2021 with an increase to 11.33 billion USD, followed by a decline to approximately 9.21 billion USD in 2022. This aligns with the fluctuations seen in the market value, reflecting changes in the market’s assessment of the company’s value creation beyond invested capital.
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MVA Spread Ratio
Abiomed Inc., MVA spread ratio calculation, comparison to benchmarks
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Market value added (MVA)1 | 9,211,960) | 11,336,044) | 7,784,733) | 10,975,901) | 16,924,322) | 5,513,197) | |
| Invested capital2 | 693,367) | 737,876) | 594,867) | 497,537) | 273,719) | 226,723) | |
| Performance Ratio | |||||||
| MVA spread ratio3 | 1,328.58% | 1,536.31% | 1,308.65% | 2,206.05% | 6,183.10% | 2,431.69% | |
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Abbott Laboratories | 230.60% | 266.78% | — | — | — | — | |
| Elevance Health Inc. | 108.49% | 116.25% | — | — | — | — | |
| Intuitive Surgical Inc. | 1,400.02% | 2,002.36% | — | — | — | — | |
| Medtronic PLC | 93.80% | 163.10% | — | — | — | — | |
| UnitedHealth Group Inc. | 214.27% | 265.59% | — | — | — | — | |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
1 MVA. See details »
2 Invested capital. See details »
3 2022 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 9,211,960 ÷ 693,367 = 1,328.58%
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added experienced significant fluctuations over the six-year period. It showed a remarkable increase from approximately 5.51 billion USD in 2017 to a peak of about 16.92 billion USD in 2018. After this peak, MVA declined substantially, falling to roughly 7.78 billion USD in 2020. A recovery was observed in 2021 when MVA increased again to around 11.34 billion USD, but this was followed by a decrease to approximately 9.21 billion USD in 2022.
- Invested Capital
- Invested capital showed a steady upward trend from 2017 through 2021, rising from about 227 million USD to around 738 million USD. However, in 2022, there was a slight decline to approximately 693 million USD, indicating a potential shift or moderation in investment deployment during the last recorded period.
- MVA Spread Ratio
- The MVA spread ratio displayed high volatility throughout the period. It started at approximately 2431.69% in 2017 and surged dramatically to a peak of 6183.10% in 2018, reflecting an exceptional value creation relative to invested capital in that year. Subsequently, the ratio decreased sharply, reaching 1308.65% in 2020. Although there was a modest increase in 2021 to 1536.31%, the ratio declined again to 1328.58% in 2022, indicating a less favorable spread of market value over invested capital compared to earlier years.
- Summary
- Overall, the financial data reveals that the company experienced dynamic changes in value creation over the timeframe. The peak performance occurred in 2018 across all presented metrics, followed by a general downward correction and some recovery attempts in the subsequent years. The decline in MVA spread ratio after 2018 suggests a diminishing efficiency in generating market value relative to invested capital. The slight decrease in invested capital in 2022 could indicate a cautious approach to investment amid these changes. These trends point to fluctuations in market perception and operational efficiency impacting value creation.
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MVA Margin
Abiomed Inc., MVA margin calculation, comparison to benchmarks
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Market value added (MVA)1 | 9,211,960) | 11,336,044) | 7,784,733) | 10,975,901) | 16,924,322) | 5,513,197) | |
| Revenue | 1,031,753) | 847,522) | 840,883) | 769,432) | 593,749) | 445,304) | |
| Add: Increase (decrease) in deferred revenue | 2,040) | 5,175) | 2,754) | 1,423) | 4,475) | 1,717) | |
| Adjusted revenue | 1,033,793) | 852,697) | 843,637) | 770,855) | 598,224) | 447,021) | |
| Performance Ratio | |||||||
| MVA margin2 | 891.08% | 1,329.43% | 922.76% | 1,423.86% | 2,829.09% | 1,233.32% | |
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Abbott Laboratories | 323.76% | 384.46% | — | — | — | — | |
| Elevance Health Inc. | 46.56% | 54.23% | — | — | — | — | |
| Intuitive Surgical Inc. | 1,209.45% | 1,575.51% | — | — | — | — | |
| Medtronic PLC | 205.92% | 391.27% | — | — | — | — | |
| UnitedHealth Group Inc. | 109.81% | 130.39% | — | — | — | — | |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
1 MVA. See details »
2 2022 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenue
= 100 × 9,211,960 ÷ 1,033,793 = 891.08%
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added showed significant fluctuation over the period analyzed. Starting at approximately 5.51 billion in early 2017, it surged to a peak of about 16.92 billion by March 2018. Subsequently, the figure experienced a decline, falling to roughly 10.98 billion in 2019 and continuing to diminish to around 7.78 billion in 2020. After this low point, the MVA partially recovered to about 11.34 billion in 2021 but decreased again in 2022 to approximately 9.21 billion. This pattern indicates volatility in the company's market valuation with notable peaks and troughs rather than consistent growth or decline.
- Adjusted Revenue
- The adjusted revenue displayed a steady and largely upward trajectory across the examined years. Starting from approximately 447 million in 2017, it increased to nearly 598 million by 2018 and continued its growth trend to 771 million in 2019. The upward momentum persisted, reaching around 844 million in 2020 and modestly increasing to approximately 853 million in 2021. The highest value recorded was in 2022, with the adjusted revenue surpassing 1 billion. This consistent increase suggests a positive trend in operational performance and revenue generation capabilities.
- MVA Margin
- The MVA margin experienced pronounced volatility throughout the period. Beginning at 1233.32% in 2017, it more than doubled to peak at 2829.09% in 2018. Following this peak, the margin retrenched sharply to 1423.86% in 2019 and further down to 922.76% by 2020. There was a recovery in 2021 to 1329.43%, but it decreased again to 891.08% in 2022. This considerable fluctuation in margin percentage reflects changing market perceptions and possibly the impact of external factors on the relationship between market value added and revenue.
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