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.
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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Geographic Areas
- Enterprise Value (EV)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Price to Book Value (P/BV) since 2005
- Aggregate Accruals
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MVA
Booking Holdings Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Booking Holdings
- The market value demonstrated relative stability between 2020 and 2021, remaining around 111 billion US dollars. A decline was observed in 2022, dropping to approximately 101.7 billion. However, the following years showed significant recovery and growth, with the value rising sharply to about 148.5 billion in 2023 and continuing upward to nearly 183.7 billion by the end of 2024.
- Invested capital
- Invested capital remained relatively stable from 2020 through 2021, ranging approximately between 14.5 billion and 15 billion US dollars. There was a noticeable decrease in 2022 to around 13.6 billion, followed by a further reduction in 2023 to about 11.4 billion. The invested capital saw a moderate increase in 2024, reaching nearly 13 billion, yet still below the levels reported in the earlier years.
- Market value added (MVA)
- Market value added mirrored the trends in market value, with a slight decrease from approximately 96.4 billion in 2020 to about 88 billion in 2022. There was a significant recovery in 2023, reaching around 137 billion, and a continued increase in 2024 to approximately 170.7 billion. This indicates improved market perception and value creation relative to the capital invested during the latter part of the period analyzed.
MVA Spread Ratio
Booking Holdings Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Airbnb Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added demonstrated fluctuations over the observed periods. It initially showed a slight decline from 96,447 million USD at the end of 2020 to 95,711 million USD by the end of 2021. This downward trend continued in 2022, with a more pronounced decrease to 88,030 million USD. However, a significant reversal occurred in 2023, where MVA increased sharply to 137,052 million USD, followed by further growth to 170,748 million USD in 2024. This pattern indicates a recovery and substantial growth in market valuation after a period of decline.
- Invested Capital
- Invested capital exhibited a declining trend from 2020 through 2023, decreasing from 14,563 million USD in 2020 to 11,415 million USD in 2023. This decline suggests a reduction in the amount of capital allocated to the company's operations or investments. In 2024, invested capital showed a modest increase to 12,973 million USD, indicating a slight reinvestment or expansion phase following the earlier contraction.
- MVA Spread Ratio
- The MVA spread ratio displayed a downward trend during the first three years, declining from 662.28% in 2020 to 637.9% in 2021, and then showing a minor increase to 645.29% in 2022. This ratio experienced a substantial rise in 2023 to 1,200.63%, followed by further growth to 1,316.18% in 2024. The significant increase in this ratio corresponds with the surge in market value added, reflecting improved value creation relative to invested capital in the latter years.
MVA Margin
Booking Holdings Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Airbnb Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
The financial data reveals several notable trends across the five-year period from 2020 to 2024. Market value added (MVA) exhibits some fluctuations with an initial slight decrease from 96,447 million USD in 2020 to 95,711 million USD in 2021. This is followed by a more pronounced decline to 88,030 million USD in 2022. However, from 2022 onwards, MVA demonstrates significant recovery and strong growth, reaching 137,052 million USD in 2023 and further increasing to 170,748 million USD in 2024. This pattern suggests a period of initial challenge or market adjustment, succeeded by robust value creation in the latter years.
Revenues show a consistent and strong upward trajectory throughout the reported periods. Starting at 6,796 million USD in 2020, revenues increase substantially each year, more than doubling by 2021 to 10,958 million USD. This growth continues at a rapid pace, reaching 17,090 million USD by 2022, then climbing to 21,365 million USD in 2023, and ultimately attaining 23,739 million USD in 2024. This steady increase in revenues highlights successful top-line expansion and suggests effective operational scaling or market penetration over the timeframe.
The MVA margin, which relates market value added to revenues, declined markedly from 1,419.18% in 2020 to 873.43% in 2021 and further to 515.1% in 2022. This downward trend indicates a period of diminishing relative market value creation compared to revenue, possibly reflecting external market factors or internal strategic shifts. However, from 2022 forward, the MVA margin shows a reversal, rising to 641.48% in 2023 and further to 719.27% in 2024. While still below the initial 2020 level, this improvement signals enhanced efficiency or increased investor confidence in the company’s value generation relative to its size of revenue.
Overall, the data presents a scenario of initial volatility in market value creation metrics despite consistent and strong revenue growth. The latter part of the period shows recovery and strengthening of market value metrics alongside the sustained increase in revenues, suggesting improving business performance and potentially favorable market perception by the end of the reported period.