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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- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Dividend Discount Model (DDM)
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Price to Operating Profit (P/OP) since 2005
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MVA
Intuitive Surgical Inc., MVA calculation
US$ in thousands
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
2 Invested capital. See details »
The financial data reveals significant dynamics in the market valuation and invested capital over the five-year period ending in 2024.
- Market (fair) value
- There is a notable overall upward trend in the market (fair) value. Starting from approximately 87.6 billion US dollars in 2020, the value increased to nearly 94.9 billion in 2021, followed by a decline to 80.9 billion in 2022. After this downturn, a strong recovery and growth trend emerges, with the market value rising substantially to 128.8 billion in 2023 and further to an impressive 197.4 billion by the end of 2024. This represents more than a doubling of market value over the five-year span.
- Invested capital
- The invested capital shows a consistent increase throughout the period. Starting from 4.49 billion US dollars in 2020, there is gradual growth to 4.52 billion in 2021, followed by a more pronounced increase to 5.4 billion in 2022. The upward trend continues more markedly in 2023, reaching 7.16 billion, and further to 7.8 billion in 2024. The growth in invested capital, while steady, is much more moderate compared to the fluctuations in the market value.
- Market Value Added (MVA)
- MVA follows a trend closely mirroring the market value, showing a strong positive correlation. Starting from 83.1 billion US dollars in 2020, it rises to 90.5 billion in 2021 before dropping to 75.5 billion in 2022. Subsequently, it experiences a robust increase, reaching 121.7 billion in 2023 and expanding further to 189.6 billion by 2024. The MVA growth indicates that the market's valuation above the invested capital greatly increased, emphasizing value creation over the years.
In summary, the company experienced market value volatility with a dip in 2022, followed by significant growth through to 2024. The invested capital exhibited steady growth, albeit at a slower rate. The market value added, reflecting market expectations of value beyond the invested capital, surged markedly, suggesting strong investor confidence and anticipated future performance improvements in the later years.
MVA Spread Ratio
Intuitive Surgical Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added demonstrates significant fluctuations over the observed period. Starting at approximately 83.1 billion USD in 2020, it increased to about 90.5 billion USD in 2021, then declined sharply to 75.5 billion USD in 2022. Subsequently, there was a strong recovery and upward momentum, with MVA reaching around 121.7 billion USD in 2023 and further rising substantially to 189.6 billion USD by the end of 2024. This indicates a volatile but overall positive trend in market value creation, culminating in a pronounced increase during the last two years.
- Invested Capital
- Invested capital shows a steady upward trend throughout the entire timeline. Starting at approximately 4.49 billion USD in 2020, it remained relatively stable through 2021 but then increased progressively each subsequent year, reaching approximately 7.80 billion USD by the end of 2024. This consistent growth in invested capital suggests ongoing expansion or reinvestment efforts within the company.
- MVA Spread Ratio
- The MVA spread ratio exhibits variability aligned with the MVA trend but reflects more pronounced changes. Beginning at 1853.43% in 2020, it rises to over 2000% in 2021, declines to 1400% in 2022, then recovers to nearly 1700% in 2023, and finally surges to 2431.18% in 2024. This ratio indicates the company's ability to generate market value over its invested capital and suggests fluctuating efficiency, with the strongest performance in 2024.
- Overall Analysis
- The data reveals a company that has been steadily increasing its invested capital while facing volatility in the market value added, reflective perhaps of external market conditions or internal operational challenges. Despite the dip in 2022, the company has exhibited strong recovery and exceptional performance in 2023 and 2024, as evidenced by rapid growth in both MVA and the MVA spread ratio. The increasing spread ratio highlights a growing gap between market value and capital invested, pointing to enhanced value creation and efficient capital use in recent years.
MVA Margin
Intuitive Surgical Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Revenue | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted revenue | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
The financial data indicates a dynamic trend over the five-year period analyzed. A notable increase in Market Value Added (MVA) is observed, rising from approximately $83.1 billion in 2020 to $189.6 billion in 2024. This reflects a substantial growth in the company's market valuation, particularly marked by a significant jump after 2022.
Adjusted revenue shows a consistent upward trajectory, increasing steadily each year from about $4.38 billion in 2020 to $8.38 billion in 2024. This rise suggests strong revenue growth, with the rate of increase accelerating over the latter years, indicative of expanding business operations or increased market demand.
MVA margin, which represents the Market Value Added as a percentage of the adjusted revenue, exhibits variability over the period. It starts at a high level of 1900.32% in 2020, declines over the next two years to 1209.45% in 2022, and then rises sharply to 2261.68% by 2024. This fluctuation indicates changes in the relationship between market value creation and revenue generation, with an improved capacity to generate market value relative to revenue in the most recent years.
- Market Value Added (MVA)
- Shows overall growth, with a decrease noted between 2021 and 2022, followed by a strong recovery and peak in 2024.
- Adjusted Revenue
- Displays a steady year-on-year increase, reflecting consistent operational growth and expansion of revenue streams.
- MVA Margin
- Fluctuates, indicating varying efficiency in converting revenue into market value. The margin declines initially but then increases notably, reaching its highest point in 2024.
Overall, the data suggests that while revenue growth has been stable and consistent, market valuation metrics have experienced some volatility. The eventual increase in MVA margin points to enhanced investor perceptions or value creation capabilities relative to revenue in the later years, signaling potential improvements in profitability, growth prospects, or market confidence.