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 Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Operating Profit Margin since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Price to Book Value (P/BV) since 2005
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MVA
Cytokinetics Inc., MVA calculation
US$ in thousands
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Cytokinetics
- The market fair value demonstrates a consistent and significant upward trend from 2018 through 2022. Starting at approximately $226 million in 2018, it rose sharply to nearly $4.26 billion by the end of 2022. This indicates a substantial increase in market capitalization and perceived value over the five-year period.
- Invested capital
- The invested capital values show volatility across the periods, with negative figures in 2018, 2019, 2020, and 2022, and a positive value only in 2021. The values range from a low of around -$117 million in 2022 to a positive $91.7 million in 2021. This irregularity suggests fluctuations in the company's investment activities or capital structure, with a brief positive invested capital position in 2021 being an outlier in the otherwise negative trend.
- Market value added (MVA)
- Market value added exhibits a strong and continuous growth pattern similar to the market fair value metric. It increased from $304 million in 2018 to approximately $4.38 billion in 2022. This reflects a substantial creation of value over invested capital, signaling that the company's market valuation far exceeds its invested capital base despite the volatility in the latter.
MVA Spread Ratio
Cytokinetics Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2022 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added shows a consistent and substantial upward trend over the five-year period under review. Starting at approximately 304 million US dollars in 2018, it increased more than threefold by the end of 2019, reaching close to 981 million. This growth accelerated further, with MVA doubling to around 1.69 billion US dollars in 2020. The trend continued strongly into 2021 and 2022, culminating at approximately 4.38 billion US dollars. This trajectory indicates significant value creation and investor confidence over time.
- Invested Capital
- Invested capital values exhibit volatility and negative figures in most years, suggesting periods of potential divestment, write-downs, or other capital structure changes. From -78 million US dollars in 2018, the invested capital deepened to nearly -107 million US dollars in 2019, followed by a slight improvement in 2020 to approximately -88 million US dollars. Notably, 2021 displays a reversal with a positive invested capital of about 92 million US dollars, indicating a possible capital injection or asset acquisition. However, in 2022, the figure again turns negative, at around -117 million US dollars. This fluctuation signals instability or strategic shifts in the company’s capital investments.
- MVA Spread Ratio
- The MVA spread ratio is only available for the year ending 2021, where it records an extremely high value of 3449.17%. This figure reflects a very strong performance relative to invested capital for that year, likely driven by the substantial increase in market value added compared to the invested capital figure. The absence of data for other years limits a full temporal analysis but the 2021 data point implies exceptional value creation in that period.
MVA Margin
Cytokinetics Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Revenues | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 MVA. See details »
2 2022 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
The financial data reveals significant fluctuations across the analyzed periods, highlighting notable trends in market value added (MVA), adjusted revenues, and MVA margin.
- Market Value Added (MVA)
- The MVA presented a consistent upward trajectory over the five-year span, starting from 304,445 thousand US dollars in 2018 and increasing substantially each year to reach 4,376,751 thousand US dollars by 2022. This growth indicates a considerable enhancement in the company’s market capitalization relative to the invested capital, reflecting an overall positive market perception and value creation.
- Adjusted Revenues
- Adjusted revenues demonstrated volatility during the period. Revenues decreased slightly from 31,501 thousand US dollars in 2018 to 26,868 thousand US dollars in 2019, followed by a sharp increase to 142,828 thousand US dollars in 2020. Subsequently, revenue declined to 70,428 thousand US dollars in 2021 and further decreased to 7,588 thousand US dollars in 2022. This irregular pattern suggests variability in operational performance or sales, potentially influenced by market conditions, product cycles, or external factors.
- MVA Margin
- The MVA margin, calculated as a percentage, displayed significant volatility. Beginning at 966.46% in 2018, it surged to 3,652.84% in 2019, then declined to 1,183.23% in 2020. The margin again increased sharply to 4,491.98% in 2021 and reached an unprecedented 57,679.9% in 2022. The extreme rise in 2022 reflects an anomalous relationship between MVA and adjusted revenues for that year, indicating that market valuation increased disproportionately to reported revenues.
In summary, while the company demonstrated strong growth in market value added, adjusted revenues exhibited inconsistent performance. The MVA margin's extreme variability, particularly the extraordinary rise in 2022, may warrant further investigation into the underlying business factors or market dynamics influencing these outcomes.