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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- Income Statement
- Statement of Comprehensive Income
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2021
- Return on Equity (ROE) since 2021
- Price to Book Value (P/BV) since 2021
- Aggregate Accruals
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MVA
Expand Energy Corp., MVA calculation
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Fair value of debt1 | |||||
| Operating lease liability | |||||
| Market value of common equity | |||||
| Market (fair) value of Expand Energy | |||||
| Less: Invested capital2 | |||||
| MVA |
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).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Expand Energy
- The market value increased from US$10,758 million in 2021 to US$13,783 million in 2022, marking a significant growth of approximately 28%. However, there was a slight decline to US$13,009 million in 2023. In 2024, the market value sharply rose to US$29,528 million, more than doubling the previous year's figure and indicating a strong positive market perception or improved business performance.
- Invested capital
- Invested capital showed a steady upward trend over the period reviewed. From US$7,990 million in 2021, it rose to US$10,988 million in 2022, an increase of roughly 37%. It continued to grow modestly to US$11,924 million in 2023 and then surged significantly to US$22,822 million in 2024, almost doubling from the prior year. This growth suggests substantial reinvestment or expansion activities.
- Market value added (MVA)
- The MVA remained relatively stable between 2021 (US$2,768 million) and 2022 (US$2,795 million). However, it declined markedly to US$1,085 million in 2023, indicating a reduced premium of market value over invested capital for that year. In 2024, MVA rebounded strongly to US$6,706 million, the highest level in the period examined, reflecting increased market confidence and value creation above invested capital.
- Summary of trends and insights
- The data reveals a general trend of growing invested capital with some fluctuations in market valuation until 2023, followed by a marked improvement in 2024. The large increase in both market value and invested capital in 2024 suggests major corporate developments or favorable market conditions. The sharp rebound in MVA in 2024 further indicates enhanced shareholder value creation relative to the capital invested. Overall, the company's financial indicators demonstrate periods of steady expansion with a particularly strong positive outlook in the final year reported.
MVA Spread Ratio
Expand Energy Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Market value added (MVA)1 | |||||
| Invested capital2 | |||||
| Performance Ratio | |||||
| MVA spread ratio3 | |||||
| Benchmarks | |||||
| MVA Spread Ratio, Competitors4 | |||||
| Chevron Corp. | |||||
| ConocoPhillips | |||||
| Exxon Mobil Corp. | |||||
| Occidental Petroleum 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).
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 displayed volatility over the reported periods. Initially, it showed a slight increase from 2768 million US dollars in 2021 to 2795 million US dollars in 2022. However, it experienced a significant decline in 2023, dropping sharply to 1085 million US dollars. Notably, in 2024, there was a strong rebound, with MVA rising considerably to 6706 million US dollars, surpassing the levels recorded in the first two years.
- Invested Capital
- The invested capital demonstrated a consistent upward trajectory throughout the period. It increased from 7990 million US dollars in 2021 to 10988 million US dollars in 2022 and further to 11924 million US dollars in 2023. A substantial increase is evident in 2024, reaching 22822 million US dollars, nearly doubling the invested capital compared to the previous year.
- MVA Spread Ratio
- The MVA spread ratio showed a general declining trend initially, decreasing from 34.64% in 2021 to 25.44% in 2022, followed by a further drop to 9.1% in 2023. However, there was a marked improvement in 2024 when the ratio rose to 29.39%, indicating a recovery in the value spread relative to invested capital.
- Overall Analysis
- The financial indicators reveal a pattern of initial stagnation or decline, particularly in the MVA and its spread ratio between 2022 and 2023, despite steady growth in invested capital. The sharp decline in MVA and spread ratio in 2023 suggests a temporary decrease in value creation relative to capital deployment. Contrastingly, 2024 exhibits strong recovery and growth across all metrics, with a significant increase in both invested capital and MVA, alongside a substantial improvement in MVA spread ratio. This reversal points to an enhanced effectiveness of capital utilization and stronger market valuation during the latest period.
MVA Margin
Expand Energy Corp., MVA margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Market value added (MVA)1 | |||||
| Revenues | |||||
| Performance Ratio | |||||
| MVA margin2 | |||||
| Benchmarks | |||||
| MVA Margin, Competitors3 | |||||
| Chevron Corp. | |||||
| ConocoPhillips | |||||
| Exxon Mobil Corp. | |||||
| Occidental Petroleum 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).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added demonstrated a fluctuating trend over the analyzed period. Starting at 2,768 million US dollars at the end of 2021, it slightly increased to 2,795 million US dollars by the end of 2022. However, it experienced a significant decline in 2023, falling to 1,085 million US dollars, and then showed a remarkable increase in 2024, reaching 6,706 million US dollars. This indicates a sharp rebound and substantial growth in the latest period compared to previous years.
- Revenues
- Revenues exhibited considerable volatility throughout the reported years. The year ending 2022 saw a substantial increase in revenues, almost doubling from 7,301 million US dollars in 2021 to 14,123 million US dollars. Nevertheless, in 2023, revenues declined sharply to 6,047 million US dollars and continued to decrease in 2024 to 4,259 million US dollars. This pattern indicates a peak in 2022 followed by steep reductions over the subsequent two years.
- MVA Margin
- The MVA margin reflected significant changes across the time periods. Initially, it decreased from 37.91% in 2021 to 19.79% in 2022, and further to 17.95% in 2023, indicating diminishing efficiency or profitability related to market value added in those periods. A drastic increase occurred in 2024, with the MVA margin rising sharply to 157.47%, suggesting a highly favorable market value added relative to revenues during the last reported year.
- Summary of Trends
- The overall analysis shows a company experiencing considerable fluctuations in both market value added and revenues. After a peak in revenue in 2022, revenues contracted significantly over the next two years, while market value added was variable but culminated in a pronounced increase in 2024. The MVA margin, reflecting the company's value creation relative to revenues, followed a declining trend initially but surged dramatically in the final year. These patterns suggest that although the company faced revenue challenges, it may have improved its value generation efficiency considerably by 2024.