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
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 »
| Item | Description | The company |
|---|---|---|
| MVA | Fiserv Inc. market (fair) value less invested capital. | Fiserv Inc. MVA increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
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 | 26,955) | 41,910) | 36,800) | 29,665) | 25,537) | |
| Invested capital2 | 59,700) | 60,165) | 62,514) | 9,909) | 9,201) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 45.15% | 69.66% | 58.87% | 299.38% | 277.55% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Accenture PLC | 739.74% | 550.21% | 505.40% | 481.52% | — | |
| Adobe Inc. | 1,033.13% | 1,082.99% | 884.94% | 680.30% | — | |
| International Business Machines Corp. | 54.96% | 39.12% | 47.78% | — | — | |
| Intuit Inc. | 1,175.12% | 976.09% | 1,553.30% | 1,330.67% | — | |
| Microsoft Corp. | 1,383.21% | 1,315.93% | 962.41% | 863.13% | — | |
| Oracle Corp. | 260.27% | 180.84% | 220.64% | 167.48% | — | |
| Palo Alto Networks Inc. | 573.47% | 267.90% | 424.76% | 461.39% | — | |
| Salesforce Inc. | 270.75% | 226.93% | 326.41% | — | — | |
| ServiceNow Inc. | 1,798.18% | 2,575.52% | 2,192.76% | — | — | |
| Synopsys Inc. | 707.79% | 468.10% | 272.11% | 150.54% | — | |
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 × 26,955 ÷ 59,700 = 45.15%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| MVA spread ratio | The ratio of MVA to invested capital. It measures the efficiency with which investors’ capital investment has translated into a franchise value and into an aggregate net present value premium. | Fiserv Inc. MVA spread ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
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 | 26,955) | 41,910) | 36,800) | 29,665) | 25,537) | |
| Revenue | 16,226) | 14,852) | 10,187) | 5,823) | 5,696) | |
| Add: Increase (decrease) in contract liabilities | 77) | 86) | 178) | (161) | 69) | |
| Adjusted revenue | 16,303) | 14,938) | 10,365) | 5,662) | 5,765) | |
| Performance Ratio | ||||||
| MVA margin2 | 165.34% | 280.56% | 355.04% | 523.93% | 442.97% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Accenture PLC | 379.26% | 279.96% | 233.58% | 202.17% | — | |
| Adobe Inc. | 1,287.44% | 1,554.19% | 1,330.31% | 1,114.60% | — | |
| International Business Machines Corp. | 104.85% | 68.01% | 81.54% | — | — | |
| Intuit Inc. | 1,489.94% | 1,098.60% | 1,034.92% | 884.25% | — | |
| Microsoft Corp. | 1,148.11% | 976.86% | 711.95% | 612.04% | — | |
| Oracle Corp. | 514.72% | 411.93% | 401.82% | 302.52% | — | |
| Palo Alto Networks Inc. | 771.68% | 434.92% | 469.62% | 683.93% | — | |
| Salesforce Inc. | 620.94% | 558.53% | 642.57% | — | — | |
| ServiceNow Inc. | 1,555.49% | 2,101.04% | 1,606.91% | — | — | |
| Synopsys Inc. | 1,126.17% | 803.94% | 470.26% | 256.95% | — | |
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 × 26,955 ÷ 16,303 = 165.34%
3 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| MVA margin | The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value. | Fiserv Inc. MVA margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |