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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- Cash Flow Statement
- Common-Size Income Statement
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Current Ratio since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
- Aggregate Accruals
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MVA
Express Scripts Holding Co., MVA calculation
US$ in thousands
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Express Scripts
- The market value showed a rising trend from 2013 to 2014, increasing from approximately 74.7 billion USD to 77.5 billion USD. However, from 2014 to 2016, there was a noticeable decline, reaching a low of around 58.2 billion USD in 2016. In 2017, a modest recovery occurred with the value rising slightly to about 61.0 billion USD. Overall, the market value peaked early in the period and faced downward pressure afterward, with a partial rebound at the end.
- Invested capital
- The invested capital displayed a consistent downward trend throughout the five-year period. Starting at roughly 41.3 billion USD in 2013, it steadily decreased each year to a low of nearly 35.7 billion USD in 2016. A slight increase occurred in 2017, bringing the invested capital up to approximately 37.0 billion USD. Despite this minor uptick, the general pattern indicates a reduction in invested capital over time.
- Market value added (MVA)
- The market value added experienced a growth phase between 2013 and 2014, rising from about 33.4 billion USD to almost 38.9 billion USD. Afterward, the MVA declined significantly through 2015 and 2016, falling to approximately 22.5 billion USD in 2016. In 2017, the MVA exhibited a slight recovery, increasing to nearly 24.0 billion USD. This pattern mirrors the market value's trend, reflecting a period of reduced market performance followed by marginal improvement.
MVA Spread Ratio
Express Scripts Holding Co., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2017 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added exhibited notable fluctuations over the analyzed period. Starting at approximately 33.45 billion US dollars in 2013, it increased to nearly 38.92 billion in 2014. However, a significant decline followed over the next two years, reaching about 22.52 billion in 2016. A slight recovery was observed in 2017, with MVA rising to approximately 23.98 billion.
- Invested Capital
- Invested capital demonstrated a general downward trend from 2013 to 2016, moving from roughly 41.29 billion US dollars to 35.71 billion in 2016. In 2017, a moderate increase brought this figure to around 37.01 billion. This pattern indicates a reduction in capital investment initially, followed by a modest rebound in the final year.
- MVA Spread Ratio
- The MVA spread ratio, representing the proportion of market value added relative to invested capital, peaked at 100.77% in 2014, suggesting the company generated market value in excess of its invested capital to a high degree. After 2014, the ratio declined significantly, falling to 63.06% in 2016 and slightly improving to 64.79% in 2017. This indicates a reduction in value creation efficiency over time, albeit maintaining a positive spread.
- Overall Trend Analysis
- The data reveals that the company experienced its strongest market performance and value creation in 2014. Subsequent years show a downward adjustment in both market value added and invested capital with a corresponding decline in the MVA spread ratio. While there was some recovery in 2017, the company did not return to the peaks observed in 2014. This suggests challenges in sustaining growth or profitability relative to capital invested during the latter part of the period analyzed.
MVA Margin
Express Scripts Holding Co., MVA margin calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 MVA. See details »
2 2017 Calculation
MVA margin = 100 × MVA ÷ Revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- From 2013 to 2014, there was a significant increase in market value added, rising from approximately 33.5 billion US dollars to 38.9 billion US dollars. However, the subsequent years showed a declining trend, with MVA dropping to about 24.7 billion in 2015 and further decreasing to approximately 22.5 billion in 2016. A slight recovery appeared in 2017, with MVA increasing marginally to nearly 24.0 billion US dollars.
- Revenues
- Revenues demonstrated relative stability over the five-year period. Starting at roughly 104.1 billion US dollars in 2013, revenues slightly declined to around 100.9 billion in 2014, then experienced slight fluctuations but remained close to the 100 billion mark through 2017. Overall, there was a modest decrease in revenues from 2013 to 2017.
- MVA Margin
- The MVA margin, which represents market value added as a percentage of revenues, followed a pattern similar to MVA. It increased notably from 32.13% in 2013 to 38.58% in 2014, indicating enhanced value creation relative to revenue. Following this peak, the margin declined significantly to 24.29% in 2015 and continued to decrease to 22.46% in 2016. A minor improvement occurred in 2017, with the margin rising slightly to 23.96%.
- Summary
- The data reflects a peak in market value added and MVA margin in 2014, followed by a pronounced downturn over the next two years. Despite relatively stable revenues during the same period, the decline in market value added and its margin suggests challenges in creating shareholder value after 2014. The slight recovery in 2017 indicates some improvement, but levels remain substantially lower than the peak year.