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
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
| 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% | |
| Allergan PLC | 7.16% | -24.32% | -17.32% | -2.04% | 29.63% | |
| 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
| 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% | |
| Allergan PLC | 35.72% | -140.33% | -112.37% | -15.60% | 250.83% | |
| 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. |