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
DexCom 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 »
The analysis of Market Value Added (MVA) from 2018 to 2022 reveals a substantial expansion in the difference between the total market value and the invested capital, indicating significant wealth creation for shareholders over the five-year period.
- Market Valuation Trends
- The fair market value experienced rapid acceleration between 2018 and 2020, increasing from approximately 14.38 billion to 40.90 billion. Growth slowed significantly after 2020, transitioning into a period of marginal increases to reach 43.26 billion by the end of 2022.
- Invested Capital Dynamics
- Invested capital exhibited fluctuations throughout the period, with a notable dip in 2019 to 836.3 million before rising to a peak of 1.90 billion in 2021. By 2022, invested capital moderated to 1.65 billion. Throughout the analyzed timeframe, invested capital remained a small fraction of the overall market value, highlighting a low reliance on capital intensity relative to market valuation.
- Market Value Added Performance
- MVA grew exponentially from 12.93 billion in 2018 to 39.53 billion by 2020, reflecting an increase of approximately 205% over two years. From 2020 to 2022, the MVA stabilized, exhibiting slow but consistent growth to end the period at 41.61 billion. This trajectory suggests that the market's perception of the firm's future earning potential and growth prospects accelerated sharply until 2020, after which the valuation entered a phase of consolidation.
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MVA Spread Ratio
DexCom 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 | 41,606,104) | 40,129,713) | 39,531,354) | 23,428,443) | 12,930,058) | |
| Invested capital2 | 1,649,000) | 1,899,300) | 1,367,200) | 836,300) | 1,449,197) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 2,523.11% | 2,112.87% | 2,891.41% | 2,801.44% | 892.22% | |
| 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: 2022-12-31), 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 × 41,606,104 ÷ 1,649,000 = 2,523.11%
4 Click competitor name to see calculations.
The financial data indicates a period of substantial growth in market value creation between 2018 and 2022. A consistent upward trajectory in market value added is paired with fluctuations in invested capital, resulting in highly elevated MVA spread ratios throughout the analyzed period.
- Market Value Added (MVA)
- A strong and continuous growth trend is observed in the market value added, which rose from 12,930,058 thousand US$ in 2018 to 41,606,104 thousand US$ by 2022. The most significant acceleration occurred between 2018 and 2020, where the value more than tripled, before entering a phase of more moderate, incremental growth in 2021 and 2022.
- Invested Capital
- Invested capital exhibited a volatile pattern over the five-year period. A notable decrease occurred in 2019, falling to 836,300 thousand US$, followed by a steady increase that peaked at 1,899,300 thousand US$ in 2021. A subsequent contraction to 1,649,000 thousand US$ was recorded in 2022, indicating shifts in the company's capital employment strategy.
- MVA Spread Ratio
- The MVA spread ratio remained exceptionally high, signaling that the market value created far exceeded the capital invested. The ratio experienced a sharp increase from 892.22% in 2018 to a peak of 2,891.41% in 2020. Although a correction occurred in 2021, with the ratio dropping to 2,112.87%, a recovery to 2,523.11% was observed in 2022, suggesting sustained market confidence in the efficiency of capital utilization.
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MVA Margin
DexCom 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 | 41,606,104) | 40,129,713) | 39,531,354) | 23,428,443) | 12,930,058) | |
| Revenue | 2,909,800) | 2,448,500) | 1,926,700) | 1,476,000) | 1,031,600) | |
| Add: Increase (decrease) in deferred revenue | 10,900) | (100) | 500) | (1,200) | (300) | |
| Adjusted revenue | 2,920,700) | 2,448,400) | 1,927,200) | 1,474,800) | 1,031,300) | |
| Performance Ratio | ||||||
| MVA margin2 | 1,424.53% | 1,639.02% | 2,051.23% | 1,588.58% | 1,253.76% | |
| 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: 2022-12-31), 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 revenue
= 100 × 41,606,104 ÷ 2,920,700 = 1,424.53%
3 Click competitor name to see calculations.
The financial trajectory from 2018 to 2022 is characterized by significant growth in market value and a consistent expansion of adjusted revenue, although the efficiency of value creation relative to revenue shifted after 2020.
- Market Value Added (MVA)
- A substantial upward trend is observed in the Market Value Added, which grew from 12.93 billion US dollars in 2018 to 41.61 billion US dollars by the end of 2022. The most aggressive expansion occurred between 2018 and 2020, during which the MVA more than tripled. From 2021 through 2022, the growth rate slowed considerably, indicating a transition from rapid valuation acceleration to a period of stabilization.
- Adjusted Revenue
- Adjusted revenue exhibited steady and linear growth throughout the entire analyzed period. Starting at 1.03 billion US dollars in 2018, the figure rose consistently each year to reach 2.92 billion US dollars in 2022. This indicates a sustained increase in operational scale and market penetration.
- MVA Margin
- The MVA margin followed a non-linear path, peaking in 2020 at 2,051.23% before contracting to 1,424.53% by 2022. The initial surge from 2018 to 2020 reflects a period where market valuation increased at a rate significantly higher than revenue growth. The subsequent decline in the margin from 2021 onward suggests a normalization of the valuation premium, as revenue growth continued to climb while the corresponding increase in market value became more modest.
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