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.
Paying user area
Try for free
Illumina Inc. pages available for free this week:
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Operating Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Illumina Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
MVA
Illumina Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
The financial data reveals notable trends in market value, invested capital, and market value added (MVA) over the five-year period ending in 2020.
- Market (fair) value
- The market value demonstrates a consistent upward trajectory from 2016 to 2020. Starting at approximately $25.2 billion in 2016, it rose steadily each year, reaching $33.9 billion in 2017, $43.8 billion in 2018, and $44.4 billion in 2019. A significant acceleration occurred in 2020, with the market value increasing substantially to $72.8 billion. This indicates growing investor confidence and a strong appreciation in the company's market capitalization over the period.
- Invested capital
- Invested capital showed a moderate increase from $2.9 billion in 2016 to nearly $5.0 billion in 2019, reflecting incremental capital investments or retained earnings being deployed into the business. However, in 2020, invested capital slightly declined to about $4.9 billion from $5.0 billion the previous year, suggesting a stabilization or slight reduction in capital deployment despite the surge in market value.
- Market value added (MVA)
- The MVA, representing the difference between market value and invested capital, followed a similar pattern to market value. Starting at $22.3 billion in 2016, it increased annually to $30.3 billion in 2017, $39.8 billion in 2018, and nearly $39.4 billion in 2019. In 2020, MVA rose markedly to approximately $67.9 billion. This indicates a substantial increase in shareholder wealth and value creation beyond the capital invested in the business, particularly pronounced in the final year.
Overall, the company experienced moderate growth in invested capital but a much sharper rise in market valuation and market value added, highlighting improved market perceptions and value generation for shareholders over the five-year span. The divergence between relatively stable invested capital and sharply increasing market value suggests strong operational performance or favorable market conditions driving market capitalization gains, especially in 2020.
MVA Spread Ratio
Illumina Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2020 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added (MVA) showed a steady increase from 2016 through 2018, rising from $22,346 million to $39,840 million. In 2019, there was a slight decline, with MVA decreasing marginally to $39,432 million. However, in 2020, a significant increase was observed, with MVA reaching $67,858 million, indicating a strong enhancement in market value during that year.
- Invested Capital
- Invested capital increased consistently from $2,874 million in 2016 to $4,997 million in 2019, reflecting a growth in the company's investment base. However, in 2020, invested capital experienced a slight decrease to $4,907 million, suggesting a minor reduction in capital investment or possibly more efficient capital utilization.
- MVA Spread Ratio
- The MVA spread ratio exhibited an upward trend overall, starting at 777.45% in 2016 and rising steadily to 998.68% in 2018. A decline occurred in 2019, with the ratio falling to 789.11%. Nonetheless, this ratio surged dramatically in 2020 to 1,382.87%, indicating a substantial improvement in the value generated over the invested capital in that year.
- Overall Insights
- The data reveals a pattern of strong growth in market value relative to invested capital over the period, with a minor setback in 2019. The significant rise in the MVA spread ratio in 2020, despite a slight decrease in invested capital, suggests enhanced value creation efficiency and possibly improved profitability or market perception during that year.
MVA Margin
Illumina Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Revenue | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 MVA. See details »
2 2020 Calculation
MVA margin = 100 × MVA ÷ Revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added exhibited an overall upward trend from 2016 to 2020. Starting at 22,346 million US dollars in 2016, it increased consistently through the years, reaching 67,858 million US dollars in 2020. Despite a slight decrease from 39,840 million in 2018 to 39,432 million in 2019, the general trajectory shows significant growth, particularly with a substantial jump in 2020.
- Revenue
- Revenue showed a steady increase from 2016 to 2019, rising from 2,398 million US dollars in 2016 to a peak of 3,543 million US dollars in 2019. However, in 2020, there was a decline to 3,239 million US dollars. This decline contrasts with the rising trend in previous years, indicating challenges or changes impacting revenue last year.
- MVA Margin
- The MVA margin, expressed as a percentage, demonstrated strong growth throughout the period. Starting at 931.69% in 2016, it increased steadily, peaking at 1,195.33% in 2018. Although it decreased slightly in 2019 to 1,112.96%, it then surged to 2,095.02% in 2020. The margin's sharp increase in 2020 suggests a disproportionately higher market value added compared to revenue, reflecting enhanced market perceptions or value generation beyond sales.
- Overall Analysis
- The data indicates robust market value creation over the five-year period, with the company significantly increasing its market value added despite fluctuations in revenue. The substantial improvement in MVA margin in the final year highlights an enhanced valuation metric relative to revenue, suggesting strong investor confidence or improved profitability. The revenue decrease in 2020 contrasts with this trend but does not appear to have negatively impacted market value perception.