Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Gilead Sciences Inc. (NASDAQ:GILD)

Market Value Added (MVA)

Advanced level

Market value added (MVA) is the difference between a firms’s 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

Gilead Sciences Inc., MVA calculation

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Fair value of short-term and long-term debt1 27,300  27,100  35,500  27,000  23,700 
Operating lease liability 725  484  437  322  279 
Market value of common equity 88,581  83,265  105,269  92,148  122,141 
Preferred stock, par value $0.001 per share; none outstanding —  —  —  —  — 
Noncontrolling interest 125  147  59  476  579 
Less: Marketable securities 14,209  13,572  29,741  24,579  13,357 
Market (fair) value of Gilead 102,522  97,425  111,525  95,367  133,343 
Less: Invested capital2 32,153  35,615  24,586  20,041  27,471 
MVA 70,369  61,809  86,938  75,326  105,871 

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-24).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA Gilead Sciences Inc.’s market (fair) value less invested capital. Gilead Sciences Inc.’s MVA decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.

MVA Spread Ratio

Gilead Sciences Inc., MVA spread ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Market value added (MVA)1 70,369  61,809  86,938  75,326  105,871 
Invested capital2 32,153  35,615  24,586  20,041  27,471 
Performance Ratio
MVA spread ratio3 218.86% 173.55% 353.60% 375.87% 385.39%
Benchmarks
MVA Spread Ratio, Competitors4
Abbott Laboratories 203.80% 163.05% 105.68% 115.20% 103.19%
AbbVie Inc. 236.34% 363.57% 399.31% 176.28% 173.21%
Amgen Inc. 341.92% 418.34% 430.42% 289.63% 235.60%
Biogen Inc. 341.43% 414.66% 501.05% 357.29% 453.23%
Bristol-Myers Squibb Co. 90.05% 357.63% 562.86% 434.48% 604.37%
Eli Lilly & Co. 601.09% 443.71% 317.93% 313.14% 284.18%
Illumina Inc. 789.11% 998.68% 841.95% 777.45% 794.02%
Johnson & Johnson 335.85% 288.60% 261.52% 301.73% 285.18%
Merck & Co. Inc. 328.56% 362.76% 219.59% 251.63% 139.01%
Pfizer Inc. 95.96% 163.95% 129.91% 85.80% 81.93%
Regeneron Pharmaceuticals Inc. 463.34% 580.61% 593.24% 958.29% 1,166.32%
Vertex Pharmaceuticals Inc. 1,179.74% 1,150.65% 1,235.48% 674.42% 764.06%
Zoetis Inc. 667.66% 408.21% 480.52% 354.22% 273.14%

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-24).

1 MVA. See details »

2 Invested capital. See details »

3 2019 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 70,369 ÷ 32,153 = 218.86%

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. Gilead Sciences Inc.’s MVA spread ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

MVA Margin

Gilead Sciences Inc., MVA margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Market value added (MVA)1 70,369  61,809  86,938  75,326  105,871 
Product sales 22,119  21,677  25,662  29,953  32,151 
Performance Ratio
MVA margin2 318.14% 285.14% 338.78% 251.48% 329.29%
Benchmarks
MVA Margin, Competitors3
Abbott Laboratories 368.47% 311.69% 252.28% 250.26% 153.78%
AbbVie Inc. 446.13% 371.34% 640.27% 331.71% 332.19%
Amgen Inc. 575.79% 468.33% 476.30% 427.69% 392.30%
Biogen Inc. 335.84% 405.96% 509.35% 402.61% 467.80%
Bristol-Myers Squibb Co. 345.41% 300.74% 448.04% 396.64% 527.50%
Eli Lilly & Co. 578.77% 464.62% 310.56% 336.26% 316.65%
Illumina Inc. 1,112.96% 1,195.33% 1,100.24% 931.69% 981.01%
Johnson & Johnson 396.88% 357.88% 364.69% 353.81% 303.53%
Merck & Co. Inc. 376.50% 420.85% 272.23% 334.87% 221.21%
Pfizer Inc. 224.34% 310.56% 254.28% 199.73% 178.61%
Regeneron Pharmaceuticals Inc. 382.11% 537.12% 496.04% 662.31% 743.95%
Vertex Pharmaceuticals Inc. 1,377.91% 1,457.72% 1,559.71% 1,176.70% 1,936.02%
Zoetis Inc. 1,049.26% 654.82% 679.17% 489.40% 399.11%

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-24).

1 MVA. See details »

2 2019 Calculation
MVA margin = 100 × MVA ÷ Product sales
= 100 × 70,369 ÷ 22,119 = 318.14%

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. Gilead Sciences Inc.’s MVA margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.