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
PayPal Holdings Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | PayPal Holdings Inc. market (fair) value less invested capital. | PayPal Holdings Inc. MVA increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
MVA Spread Ratio
PayPal Holdings Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 123,653 | 295,832 | 123,901 | 91,390 | 74,670 | |
| Invested capital2 | 31,317 | 30,260 | 22,276 | 17,780 | 17,554 | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 394.84% | 977.63% | 556.21% | 514.02% | 425.37% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Accenture PLC | 739.74% | 550.21% | 505.40% | 481.52% | 496.80% | |
| Adobe Inc. | 1,033.13% | 1,082.99% | 884.94% | 680.30% | 847.52% | |
| International Business Machines Corp. | 54.96% | 39.12% | 47.78% | 58.57% | 83.22% | |
| Intuit Inc. | 1,175.12% | 976.09% | 1,553.30% | 1,330.67% | 1,158.20% | |
| Mastercard Inc. | 1,583.49% | 1,680.77% | 2,296.30% | 1,961.07% | 1,816.28% | |
| Microsoft Corp. | 1,383.21% | 1,315.93% | 962.41% | 863.13% | 521.14% | |
| Oracle Corp. | 260.27% | 180.84% | 220.64% | 167.48% | 189.67% | |
| Salesforce Inc. | 270.75% | 226.93% | 326.41% | 402.29% | 263.82% | |
| ServiceNow Inc. | 1,798.18% | 2,575.52% | 2,192.76% | 1,592.79% | 1,419.90% | |
| Visa Inc. | 641.98% | 665.77% | 695.79% | 581.94% | 426.48% | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2021 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 123,653 ÷ 31,317 = 394.84%
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. | PayPal Holdings Inc. MVA spread ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
MVA Margin
PayPal Holdings Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 123,653 | 295,832 | 123,901 | 91,390 | 74,670 | |
| Net revenues | 25,371 | 21,454 | 17,772 | 15,451 | 13,094 | |
| Performance Ratio | ||||||
| MVA margin2 | 487.38% | 1,378.91% | 697.17% | 591.48% | 570.26% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Accenture PLC | 379.26% | 279.96% | 233.58% | 202.17% | 213.12% | |
| Adobe Inc. | 1,287.44% | 1,554.19% | 1,330.31% | 1,114.60% | 1,105.25% | |
| International Business Machines Corp. | 104.85% | 68.01% | 81.54% | 82.32% | 113.30% | |
| Intuit Inc. | 1,489.94% | 1,098.60% | 1,034.92% | 884.25% | 643.71% | |
| Mastercard Inc. | 1,859.24% | 2,159.18% | 1,992.62% | 1,467.79% | 1,407.06% | |
| Microsoft Corp. | 1,148.11% | 976.86% | 711.95% | 612.04% | 442.48% | |
| Oracle Corp. | 514.72% | 411.93% | 401.82% | 302.52% | 389.03% | |
| Salesforce Inc. | 620.94% | 558.53% | 642.57% | 643.95% | 473.27% | |
| ServiceNow Inc. | 1,555.49% | 2,101.04% | 1,606.91% | 1,344.70% | 1,143.99% | |
| Visa Inc. | 1,619.41% | 1,874.98% | 1,543.59% | 1,343.46% | 1,186.67% | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 MVA. See details »
2 2021 Calculation
MVA margin = 100 × MVA ÷ Net revenues
= 100 × 123,653 ÷ 25,371 = 487.38%
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. | PayPal Holdings Inc. MVA margin ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |