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
- Cash Flow Statement
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Analysis of Debt
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MVA
Fiserv 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 »
The financial data for the specified periods reveals notable trends in market value, invested capital, and market value added for the entity under review.
- Market (Fair) Value
- The market fair value increased steadily from 2017 through 2020, starting at $34,738 million and peaking at $102,075 million in 2020. However, in 2021, this figure declined to $86,655 million, indicating a market correction or possible reduction in investor valuation following the previous growth.
- Invested Capital
- Invested capital showed consistent growth from 2017 ($9,201 million) to 2018 ($9,909 million), followed by a significant increase in 2019 to $62,514 million. This level was maintained with slight decreases in 2020 ($60,165 million) and 2021 ($59,700 million). The marked increase in 2019 suggests a substantial capital investment or acquisition during that year, with relative stabilization in subsequent years.
- Market Value Added (MVA)
- The market value added, representing the value created above invested capital, increased year-over-year from $25,537 million in 2017 to a peak of $41,910 million in 2020, reflecting enhanced market valuation relative to invested capital. However, in 2021, MVA decreased to $26,955 million, aligning with the decline in market fair value, which may point to reduced market confidence or valuation adjustments.
In summary, the company experienced significant growth in market valuation and capital investment between 2017 and 2020, with a pronounced jump in invested capital in 2019. The period culminating in 2020 marked the highest market value added, indicating optimal value generation relative to capital invested. The decline in 2021 across market value and MVA suggests a potential shift in market perceptions or operational challenges affecting overall valuation performance.
MVA Spread Ratio
Fiserv Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Fair Isaac Corp. | ||||||
| International Business Machines Corp. | ||||||
| Intuit Inc. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| Palantir Technologies Inc. | ||||||
| Palo Alto Networks Inc. | ||||||
| Salesforce Inc. | ||||||
| ServiceNow Inc. | ||||||
| Synopsys Inc. | ||||||
| Workday Inc. | ||||||
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 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added exhibited an increasing trend from 2017 to 2020, rising from 25,537 million US dollars to 41,910 million US dollars. However, in 2021, there was a noticeable decline to 26,955 million US dollars, indicating a significant reduction compared to the previous year.
- Invested Capital
- Invested capital generally increased sharply from 9,201 million US dollars in 2017 to a peak of 62,514 million US dollars in 2019. After 2019, it slightly decreased over the next two years, reaching 59,700 million US dollars in 2021, showing some stabilization at a high level compared to earlier years.
- MVA Spread Ratio
- The MVA spread ratio showed a strong positive performance in 2017 and 2018, standing at 277.55% and 299.38% respectively, indicating high value creation relative to invested capital. Starting in 2019, this ratio sharply declined to 58.87%, followed by a slight increase to 69.66% in 2020, and another decrease to 45.15% in 2021. This suggests a significant reduction in the efficiency or profitability of capital investment over the later years.
MVA Margin
Fiserv 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 | ||||||
| Revenue | ||||||
| Add: Increase (decrease) in contract liabilities | ||||||
| Adjusted revenue | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Fair Isaac Corp. | ||||||
| International Business Machines Corp. | ||||||
| Intuit Inc. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| Palantir Technologies Inc. | ||||||
| Palo Alto Networks Inc. | ||||||
| Salesforce Inc. | ||||||
| ServiceNow Inc. | ||||||
| Synopsys Inc. | ||||||
| Workday Inc. | ||||||
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 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added displays an overall growth trend from 2017 to 2020, increasing from $25,537 million to a peak of $41,910 million. However, in 2021 there is a notable decline to $26,955 million, indicating a significant reduction in the market value added compared to the previous year.
- Adjusted Revenue
- Adjusted Revenue remained relatively stable between 2017 and 2018, with a slight decrease from $5,765 million to $5,662 million. Subsequently, there is a substantial increase starting in 2019, with revenues nearly doubling to $10,365 million, followed by continued growth in 2020 and 2021, reaching $16,303 million. This progression marks a period of strong revenue expansion over the last three years.
- MVA Margin
- The MVA margin exhibits high volatility throughout the period. It increased sharply from 442.97% in 2017 to a peak of 523.93% in 2018, then declined significantly to 355.04% in 2019 and continued to fall to 280.56% in 2020. The downward trend continued in 2021, where the margin decreased to 165.34%. This decline suggests a decreasing efficiency in translating market value added relative to adjusted revenue over time.
- Summary of Trends and Insights
- The data indicates that while adjusted revenue experienced robust growth from 2019 through 2021, the market value added did not sustain a similar upward trajectory, particularly dropping sharply in 2021 after peaking in 2020. This divergence is reflected in the decreasing MVA margin, implying that the company's market value creation potential is diminishing relative to its revenue growth. These patterns could suggest challenges in maintaining investor value or increasing costs impacting profitability, despite strong top-line performance.