Market Value Added (MVA)
Difficulty: Advanced
Market value added (MVA) is the difference between a firms's 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
Booking Holdings Inc., MVA calculation
USD $ in thousands
Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
---|---|---|---|---|---|---|
| Fair value of Senior Notes1 | |||||
| PV of operating lease payments2 | |||||
| Market value of common equity | |||||
| Less: Available for sale securities | |||||
| Market (fair) value of Booking Holdings | |||||
| Less: Invested capital3 | |||||
| MVA |
Source: Based on data from Booking Holdings Inc. Annual Reports
1 Fair value of debt. See Details »
2 Present value of operating lease payments. See Details »
3 Invested capital. See Details »
Item | Description | The company |
---|---|---|
MVA | Booking Holdings's market (fair) value less invested capital. | Booking Holdings Inc.'s MVA increased from 2015 to 2016 and from 2016 to 2017. |
MVA Spread
Booking Holdings Inc., MVA spread calculation
Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
---|---|---|---|---|---|---|
Selected Financial Data (USD $ in thousands) | ||||||
| Market value added (MVA)1 | |||||
| Invested capital2 | |||||
Ratio | ||||||
| MVA spread3 | % | % | % | % | % |
Source: Based on data from Booking Holdings Inc. Annual Reports
2017 Calculations
1 MVA. See Details »
2 Invested capital. See Details »
3 MVA spread = 100 × MVA ÷ Invested capital
= 100 × ÷ = %
Ratio | Description | The company |
---|---|---|
MVA spread | The ratio of MVA to invested capital. It measures the efficiency with which investors' capital investment has translated into a franchise value and into an aggregate net present value premium. | Booking Holdings Inc.'s MVA spread improved from 2015 to 2016 and from 2016 to 2017. |
MVA Margin
Booking Holdings Inc., MVA margin calculation
Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
---|---|---|---|---|---|---|
Selected Financial Data (USD $ in thousands) | ||||||
| Market value added (MVA)1 | |||||
| Revenues | |||||
Ratio | ||||||
| MVA margin2 | % | % | % | % | % |
Source: Based on data from Booking Holdings Inc. Annual Reports
2017 Calculations
1 MVA. See Details »
2 MVA margin = 100 × MVA ÷ Revenues
= 100 × ÷ = %
Ratio | Description | The company |
---|---|---|
MVA margin | The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value. | Booking Holdings Inc.'s MVA margin improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017. |