Microsoft Excel LibreOffice Calc

Regeneron Pharmaceuticals Inc. (REGN)

Market Value Added (MVA)

Difficulty: Advanced

Market value added (MVA) is the difference between a firms’s 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

Regeneron Pharmaceuticals Inc., MVA calculation

US$ in thousands

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Fair value of debt1 708,500  703,453  481,126  375,510  459,064 
Operating lease liability 20,147  17,797  34,373  76,127  63,907 
Market value of common equity 44,416,806  34,745,141  38,189,072  38,482,398  41,225,338 
Preferred Stock, $.01 par value; issued and outstanding - none —  —  —  —  — 
Less: Marketable securities 3,097,200  2,083,341  1,367,741  868,283  711,915 
Market (fair) value of Regeneron 42,048,253  33,383,050  37,336,830  38,065,752  41,036,395 
Less: Invested capital2 6,178,047  4,815,536  3,528,047  3,006,006  1,763,096 
MVA 35,870,206  28,567,514  33,808,783  35,059,746  39,273,298 

Based on: 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-12).

1 Fair value of debt. See Details »

2 Invested capital. See Details »

Item Description The company
MVA Regeneron Pharmaceuticals Inc.’s market (fair) value less invested capital. Regeneron Pharmaceuticals Inc.’s MVA declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.

MVA Spread

Regeneron Pharmaceuticals Inc., MVA spread calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in thousands)
Market value added (MVA)1 35,870,206  28,567,514  33,808,783  35,059,746  39,273,298 
Invested capital2 6,178,047  4,815,536  3,528,047  3,006,006  1,763,096 
Ratio
MVA spread3 580.61% 593.24% 958.29% 1,166.32% 2,227.52%

Based on: 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-12).

2018 Calculations

1 MVA. See Details »

2 Invested capital. See Details »

3 MVA spread = 100 × MVA ÷ Invested capital
= 100 × 35,870,206 ÷ 6,178,047 = 580.61%

Ratio Description The company
MVA spread 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. Regeneron Pharmaceuticals Inc.’s MVA spread deteriorated from 2016 to 2017 and from 2017 to 2018.

MVA Margin

Regeneron Pharmaceuticals Inc., MVA margin calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in thousands)
Market value added (MVA)1 35,870,206  28,567,514  33,808,783  35,059,746  39,273,298 
Revenues 6,710,800  5,872,227  4,860,427  4,103,728  2,819,557 
Add: Increase (decrease) in deferred revenue (32,600) (113,099) 244,270  608,892  19,102 
Adjusted revenues 6,678,200  5,759,128  5,104,697  4,712,620  2,838,659 
Ratio
MVA margin2 537.12% 496.04% 662.31% 743.95% 1,383.52%

Based on: 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-12).

2018 Calculations

1 MVA. See Details »

2 MVA margin = 100 × MVA ÷ Adjusted revenues
= 100 × 35,870,206 ÷ 6,678,200 = 537.12%

Ratio Description The company
MVA margin The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value. Regeneron Pharmaceuticals Inc.’s MVA margin deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.