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
Expedia Group Inc., MVA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2017-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Expedia Group
- The market value exhibits an overall upward trend over the five-year period. It rose from $21,837 million in 2017 to $25,169 million in 2018, followed by a slight decline in 2019 to $23,890 million. However, the figure increased substantially in 2020 and 2021, reaching $33,199 million and $40,762 million respectively, indicating significant market appreciation in the later years.
- Invested capital
- Invested capital showed a gradual increase from $14,039 million in 2017 to $16,161 million in 2019. There was a minor decrease in 2020 to $15,765 million, likely reflecting possible adjustments or reallocation, before rising again to $17,498 million in 2021. Overall, the invested capital maintained an upward trajectory with only slight fluctuations.
- Market value added (MVA)
- The MVA metric, representing the difference between market value and invested capital, displays considerable variability. It increased from $7,798 million in 2017 to a peak of $10,745 million in 2018, declined sharply to $7,729 million in 2019, and then climbed significantly in subsequent years to reach $17,434 million in 2020 and $23,264 million in 2021. This pattern suggests that the company generated increased value beyond its invested capital, particularly in 2020 and 2021.
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MVA Spread Ratio
Expedia Group Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 23,264) | 17,434) | 7,729) | 10,745) | 7,798) | |
| Invested capital2 | 17,498) | 15,765) | 16,161) | 14,424) | 14,039) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 132.95% | 110.58% | 47.82% | 74.50% | 55.54% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Amazon.com Inc. | 728.57% | — | — | — | — | |
| Home Depot Inc. | 631.50% | — | — | — | — | |
| Lowe’s Cos. Inc. | 457.91% | — | — | — | — | |
| TJX Cos. Inc. | 327.36% | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2021 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 23,264 ÷ 17,498 = 132.95%
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added showed fluctuations over the years with an overall increasing trend. Starting at $7,798 million in 2017, it increased to $10,745 million in 2018, then declined to $7,729 million in 2019. A significant rebound occurred in 2020, with MVA rising sharply to $17,434 million, and this upward momentum continued into 2021, reaching $23,264 million.
- Invested Capital
- Invested Capital demonstrated a gradual progression throughout the period. Starting at $14,039 million in 2017, it increased steadily each year, reaching $14,424 million in 2018, $16,161 million in 2019, then slightly decreased to $15,765 million in 2020. The upward trend resumed in 2021, climbing to $17,498 million.
- MVA Spread Ratio
- The MVA spread ratio exhibited considerable variability, reflecting changes in the efficiency of generating value above invested capital. It was 55.54% in 2017, rose significantly to 74.5% in 2018, decreased to 47.82% in 2019, then markedly increased to 110.58% in 2020, and further improved to 132.95% in 2021. This indicates a strong enhancement in value creation relative to investment in recent years.
- Summary
- Overall, the data indicate that despite some periods of decline or stagnation, the company experienced substantial growth in market value added and efficiency in value creation from 2020 onward. Invested capital showed a steady increase with minor fluctuations, while the MVA spread ratio's significant upward trend in the latter years suggests improved financial performance and successful utilization of invested capital.
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MVA Margin
Expedia Group Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 23,264) | 17,434) | 7,729) | 10,745) | 7,798) | |
| Revenue | 8,598) | 5,199) | 12,067) | 11,223) | 10,060) | |
| Add: Increase (decrease) in deferred merchant bookings and deferred revenue | 2,575) | (2,721) | 1,309) | 1,146) | 645) | |
| Adjusted revenue | 11,173) | 2,478) | 13,376) | 12,369) | 10,705) | |
| Performance Ratio | ||||||
| MVA margin2 | 208.21% | 703.53% | 57.78% | 86.87% | 72.85% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Amazon.com Inc. | 312.93% | — | — | — | — | |
| Home Depot Inc. | 237.60% | — | — | — | — | |
| Lowe’s Cos. Inc. | 145.00% | — | — | — | — | |
| TJX Cos. Inc. | 227.93% | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 MVA. See details »
2 2021 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenue
= 100 × 23,264 ÷ 11,173 = 208.21%
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added exhibited fluctuations over the analyzed periods. It increased from 7,798 million US dollars at the end of 2017 to peak at 10,745 million in 2018, followed by a decline to 7,729 million in 2019. Subsequently, it experienced a sharp rise in 2020, reaching 17,434 million, and continued to grow to 23,264 million by the end of 2021. This indicates variable market valuation performance with a strong upward trend during the latter years.
- Adjusted Revenue
- Adjusted revenue showed a generally increasing trend from 10,705 million US dollars in 2017 to a peak of 13,376 million in 2019. However, there was a severe decline in 2020 to 2,478 million, likely impacted by external factors affecting revenues significantly during that year. In 2021, revenue partially recovered to 11,173 million, indicating a rebound but remaining below the pre-2020 peak.
- MVA Margin
- The MVA margin percentage followed a pattern aligned with the market value added fluctuations. It rose from 72.85% in 2017 to a high of 86.87% in 2018 before dropping to 57.78% in 2019. In 2020, the MVA margin surged dramatically to 703.53%, reflecting an exceptionally high market value added relative to the significantly reduced adjusted revenue that year. By 2021, it decreased to 208.21%, still substantially higher than pre-2020 levels, indicative of improved market value generation efficiency relative to revenue.
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