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
Moderna Inc., MVA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2019-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Moderna
- The market value experienced a substantial increase from 8,753 million USD in 2019 to a peak of 59,503 million USD in 2020, indicating a strong surge in valuation during that year. Following this peak, there was a steady decline over the subsequent years, dropping to 51,161 million USD in 2021, 39,987 million USD in 2022, and further to 27,724 million USD in 2023. This trend suggests a significant contraction in market capitalization after the 2020 high.
- Invested capital
- Invested capital saw a sharp increase from 481 million USD in 2019 to 4,183 million USD in 2020 and continued to grow, reaching 10,693 million USD in 2021. However, starting from 2022, invested capital decreased to 7,126 million USD and further to 5,263 million USD in 2023. This pattern indicates considerable capital investment up to 2021, followed by a notable reduction over the last two years.
- Market value added (MVA)
- The market value added demonstrated a pronounced rise from 8,272 million USD in 2019 to 55,320 million USD in 2020, reflecting the substantial market value increase relative to invested capital. Then, MVA declined to 40,468 million USD in 2021, 32,861 million USD in 2022, and 22,461 million USD in 2023. The declining MVA after 2020 indicates diminishing excess market value over capital invested, aligned with the decreases in both market value and invested capital.
MVA Spread Ratio
Moderna Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 22,461) | 32,861) | 40,468) | 55,320) | 8,272) | |
| Invested capital2 | 5,263) | 7,126) | 10,693) | 4,183) | 481) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 426.77% | 461.14% | 378.45% | 1,322.35% | 1,719.94% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| AbbVie Inc. | 438.96% | 297.39% | 253.64% | 172.70% | — | |
| Amgen Inc. | 213.63% | 308.27% | 303.88% | 343.98% | — | |
| Bristol-Myers Squibb Co. | 100.64% | 160.91% | 138.81% | 109.83% | — | |
| Danaher Corp. | 157.62% | 156.95% | 187.44% | 172.97% | — | |
| Eli Lilly & Co. | 2,390.18% | 1,239.79% | 833.40% | 778.02% | — | |
| Gilead Sciences Inc. | 148.05% | 175.26% | 119.58% | 125.56% | — | |
| Johnson & Johnson | 309.06% | 288.40% | 366.82% | 363.75% | — | |
| Merck & Co. Inc. | 412.35% | 312.72% | 223.02% | 292.93% | — | |
| Pfizer Inc. | 40.45% | 124.43% | 210.66% | 116.68% | — | |
| Regeneron Pharmaceuticals Inc. | 663.41% | 521.52% | 461.61% | 508.24% | — | |
| Thermo Fisher Scientific Inc. | 189.54% | 195.34% | 212.01% | 232.34% | — | |
| Vertex Pharmaceuticals Inc. | 712.26% | 484.09% | 564.91% | 575.24% | — | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2023 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 22,461 ÷ 5,263 = 426.77%
4 Click competitor name to see calculations.
The annual financial data reveals notable fluctuations across key financial indicators over the five-year period.
- Market Value Added (MVA)
- MVA exhibited a dramatic increase from 8,272 million US dollars at the end of 2019 to a peak of 55,320 million US dollars in 2020. Following this surge, MVA steadily declined over the subsequent years to 40,468 million in 2021, 32,861 million in 2022, and further to 22,461 million by the end of 2023. Despite the downward trend post-2020, the values remain significantly above the 2019 baseline.
- Invested Capital
- Invested capital experienced rapid growth beginning from a relatively modest 481 million US dollars at the close of 2019. It expanded sharply to 4,183 million in 2020 and then more than doubled to 10,693 million in 2021. However, invested capital decreased notably after 2021, falling to 7,126 million in 2022 and continuing down to 5,263 million in 2023. This downward adjustment suggests a contraction or divestment phase following the initial expansion period.
- MVA Spread Ratio
- The MVA spread ratio, which measures the return spread relative to invested capital, started exceptionally high at 1719.94% in 2019. It then decreased consistently each year, dropping to 1,322.35% in 2020, 378.45% in 2021, and stabilizing somewhat around the 460% range in 2022 and 427% in 2023. The sharp decline from 2019 to 2021 indicates diminishing incremental returns on invested capital, though the positive spread suggests that returns still exceed the cost of capital.
Overall, the data indicates an initial phase of rapid growth and value creation culminating in 2020, followed by a steady decline in market value added and invested capital through 2023. The decreasing MVA spread ratio corroborates a reduction in the efficiency or profitability of capital investment over this timeframe, although it remains positive. The observed trends may reflect broader market conditions, product lifecycle factors, or strategic shifts in capital allocation.
MVA Margin
Moderna Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 22,461) | 32,861) | 40,468) | 55,320) | 8,272) | |
| Net product sales | 6,671) | 18,435) | 17,675) | 200) | —) | |
| Add: Increase (decrease) in deferred revenue | (2,060) | (4,157) | 2,824) | 3,842) | (72) | |
| Adjusted net product sales | 4,611) | 14,278) | 20,499) | 4,042) | (72) | |
| Performance Ratio | ||||||
| MVA margin2 | 487.11% | 230.15% | 197.41% | 1,368.57% | — | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| AbbVie Inc. | 551.18% | 420.74% | 432.93% | 391.08% | — | |
| Amgen Inc. | 555.51% | 493.74% | 503.37% | 550.26% | — | |
| Bristol-Myers Squibb Co. | 151.08% | 250.01% | 240.26% | 232.86% | — | |
| Danaher Corp. | 517.54% | 389.99% | 468.46% | 507.10% | — | |
| Eli Lilly & Co. | 2,058.21% | 1,055.66% | 769.29% | 778.57% | — | |
| Gilead Sciences Inc. | 251.89% | 295.97% | 211.56% | 259.24% | — | |
| Johnson & Johnson | 359.73% | 345.74% | 383.60% | 433.17% | — | |
| Merck & Co. Inc. | 479.92% | 390.05% | 323.90% | 349.01% | — | |
| Pfizer Inc. | 105.20% | 136.21% | 224.83% | 284.06% | — | |
| Regeneron Pharmaceuticals Inc. | 605.08% | 525.04% | 312.14% | 495.20% | — | |
| Thermo Fisher Scientific Inc. | 378.46% | 360.17% | 431.35% | 441.03% | — | |
| Vertex Pharmaceuticals Inc. | 955.82% | 714.32% | 700.10% | 754.94% | — | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 MVA. See details »
2 2023 Calculation
MVA margin = 100 × MVA ÷ Adjusted net product sales
= 100 × 22,461 ÷ 4,611 = 487.11%
3 Click competitor name to see calculations.
The financial data reflects significant fluctuations in key metrics over the five-year period under review.
- Market Value Added (MVA)
- The Market Value Added showed a substantial increase from 8,272 million USD at the end of 2019 to a peak of 55,320 million USD in 2020. After this peak, the MVA decreased progressively over the next three years, declining to 40,468 million USD in 2021, then to 32,861 million USD in 2022, and further to 22,461 million USD in 2023. This suggests a strong market valuation spike in 2020 followed by a gradual reduction, though the MVA remained considerably higher than the 2019 level.
- Adjusted Net Product Sales
- Adjusted Net Product Sales experienced rapid growth from a negative value of -72 million USD at the end of 2019 to 4,042 million USD in 2020, and then surged significantly to 20,499 million USD in 2021. Following this peak, sales declined sharply to 14,278 million USD in 2022 and continued to fall to 4,611 million USD in 2023. This pattern indicates an initial period of poor sales or adjustments before a strong revenue generation phase, subsequently followed by a marked decrease in product sales.
- MVA Margin
- The MVA margin, which was not reported for 2019, was exceedingly high at 1,368.57% in 2020, then dropped significantly to 197.41% in 2021. In 2022, the margin slightly increased to 230.15%, before rising markedly again to 487.11% in 2023. This ratio, which relates market value added to sales, suggests that despite declining sales after 2021, the company maintained or improved its ability to generate market value relative to its product sales, especially noticeable with the sharp rise in 2023.
In summary, the company exhibited a pronounced growth phase around 2020 and 2021 in terms of both market valuation and sales, followed by declines in subsequent years. Despite these sales decreases, the MVA margin improvement indicates enhanced market value generation efficiency relative to sales in the later years.