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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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Analysis of Solvency Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Price to Operating Profit (P/OP) since 2005
- Analysis of Debt
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MVA
Monster Beverage Corp., MVA calculation
US$ in thousands
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 »
The financial data reveals significant trends related to the market valuation and capital investment of the company over the five-year period.
- Market (fair) value of Monster Beverage
- The market value has shown an overall upward trajectory, increasing from approximately $32.997 billion in 2019 to $60.536 billion in 2023. There was a notable rise between 2019 and 2020, followed by a slight decline in 2021. Subsequently, the market value rebounded strongly in 2022 and continued to increase substantially in 2023, indicating growing investor confidence and market perception of company value.
- Invested capital
- Invested capital consistently increased throughout the analyzed period, beginning at around $3.937 billion in 2019 and rising steadily each year to reach approximately $7.284 billion in 2023. This suggests ongoing capital investments or reinvestments to support the company’s operations and growth initiatives.
- Market value added (MVA)
- The MVA, representing the difference between market value and invested capital, also experienced significant growth. Starting at roughly $29.06 billion in 2019, it rose sharply to $41.02 billion in 2020 before diminishing slightly in 2021. However, the figures increased once more in 2022 and 2023, culminating at about $53.25 billion. The upward trend in MVA indicates that the company has been successful in generating value exceeding the amount of capital invested, reflecting effective management and positive market expectations.
MVA Spread Ratio
Monster Beverage Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
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 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added shows a progressive upward trend from 2019 to 2023, increasing from approximately 29.06 billion US dollars to over 53.25 billion US dollars. Notably, there is a substantial jump from 2019 to 2020, followed by a slight decline in 2021. After this dip, the MVA rebounds strongly in 2022 and continues its growth into 2023.
- Invested Capital
- Invested capital exhibits a consistent rising trend throughout the period. Starting at around 3.94 billion US dollars in 2019, it steadily increases each year, reaching about 7.28 billion US dollars in 2023. The pace of growth accelerates especially from 2021 onwards, with notable increments observed in 2022 and 2023.
- MVA Spread Ratio
- The MVA spread ratio, representing the value created over invested capital, records its highest point in 2020 at approximately 948.65%. From this peak, the ratio declines year over year to around 731.05% in 2023. Despite this downward trend, the ratio remains significantly elevated, indicating substantial value creation relative to invested capital during the entire period.
- Insights
- Overall, the data reveals robust growth in both market value added and invested capital, reflecting expansion and possibly increased investment activities. However, the decline in the MVA spread ratio since 2020 suggests that the rate of return on invested capital is moderating, even as absolute market value continues to rise. This may indicate heightened capital costs, market expectations adjustments, or diminishing marginal returns on investments made in later years.
MVA Margin
Monster Beverage Corp., 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 thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Net sales | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted net sales | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
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 sales
= 100 × ÷ =
3 Click competitor name to see calculations.
The financial data reveals several key trends over the five-year period ending in 2023. The market value added (MVA) consistently increased overall, with some fluctuations, indicating a generally positive investor perception and value creation. Adjusted net sales showed steady growth each year, reflecting rising revenue generation. The MVA margin experienced notable variation, peaking in 2020 before declining and then increasing again.
- Market Value Added (MVA)
- The MVA increased from approximately $29.1 billion in 2019 to over $53.2 billion in 2023, representing significant growth. Despite a dip in 2021, the overall trajectory is upward, demonstrating enhanced market valuation and shareholder wealth creation over the period.
- Adjusted Net Sales
- Adjusted net sales rose from about $4.18 billion in 2019 to approximately $7.12 billion in 2023. This steady increase year over year highlights successful revenue growth and possibly expanding market share or product demand.
- MVA Margin
- The MVA margin started at 695.85% in 2019 and increased to its peak of 896.17% in 2020, suggesting improved capital efficiency or profitability relative to sales. It then decreased to 688.69% in 2021 and slightly improved to 709.14% in 2022, followed by a further increase to 748.01% in 2023. This fluctuation implies variability in the company’s value creation efficiency relative to its net sales over time.