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
Shockwave Medical Inc., 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 »
An analysis of the financial metrics from 2019 to 2023 reveals a period of substantial expansion in market capitalization and overall value creation. The consistent upward trajectory of the Market Value Added indicates that the company has successfully generated significant wealth for its shareholders far exceeding the total capital invested in its operations.
- Market Value Growth
- The market fair value exhibited an aggressive growth pattern, increasing from 887,618 thousand US dollars in 2019 to 9,826,171 thousand US dollars by the end of 2023. The most pronounced acceleration occurred between 2019 and 2020, where the valuation increased more than fourfold, followed by steady appreciation in subsequent years.
- Invested Capital Trends
- Invested capital demonstrated initial volatility, decreasing from 158,673 thousand US dollars in 2019 to 91,274 thousand US dollars in 2020. However, starting in 2021, there was a sharp and consistent increase in capital deployment, reaching 672,462 thousand US dollars by December 31, 2023, which suggests a significant scaling of the company's operational base.
- Market Value Added (MVA) Performance
- The MVA rose from 728,945 thousand US dollars in 2019 to 9,153,709 thousand US dollars in 2023. Because the growth in market value vastly outpaced the growth in invested capital, the MVA expanded rapidly. This divergence highlights a strong market perception of the company's future profitability and a high efficiency in creating value relative to the capital consumed.
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MVA Spread Ratio
Shockwave Medical 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 thousands) | ||||||
| Market value added (MVA)1 | 9,153,709) | 6,511,046) | 6,021,571) | 3,850,014) | 728,945) | |
| Invested capital2 | 672,462) | 318,057) | 174,255) | 91,274) | 158,673) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 1,361.22% | 2,047.13% | 3,455.61% | 4,218.08% | 459.40% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Abbott Laboratories | 257.59% | 230.60% | 266.78% | — | — | |
| Elevance Health Inc. | 105.63% | 108.49% | 116.25% | — | — | |
| Intuitive Surgical Inc. | 1,699.53% | 1,400.02% | 2,002.36% | — | — | |
| Medtronic PLC | 88.43% | 93.80% | 163.10% | — | — | |
| UnitedHealth Group Inc. | 192.81% | 214.27% | 265.59% | — | — | |
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 × 9,153,709 ÷ 672,462 = 1,361.22%
4 Click competitor name to see calculations.
The financial trajectory from 2019 to 2023 demonstrates a substantial expansion in total market value creation, although the efficiency of this value generation relative to invested capital has experienced a notable decline following a peak in 2020.
- Market Value Added (MVA)
- A consistent and significant upward trend is observed in the MVA, which grew from 728,945 thousand US dollars in 2019 to 9,153,709 thousand US dollars by the end of 2023. The most aggressive growth occurred between 2019 and 2020, where the value increased more than fivefold, signaling a period of rapid market appreciation and heightened investor confidence in the company's future earnings potential.
- Invested Capital
- Invested capital exhibited volatility in the early period, decreasing in 2020 before entering a phase of sustained growth. From 2021 to 2023, capital requirements increased substantially, rising from 174,255 thousand US dollars to 672,462 thousand US dollars. The sharpest increase occurred between 2022 and 2023, where invested capital more than doubled, indicating significant reinvestment into the business operations.
- MVA Spread Ratio
- The MVA spread ratio reached an exceptional peak of 4,218.08% in 2020, reflecting a period where market value growth far outpaced the capital base. However, from 2021 through 2023, a steady downward trend is evident, with the ratio contracting to 1,361.22%. This decline suggests that while absolute market value continues to rise, the rate of value creation relative to the increasing amount of invested capital is diminishing, likely due to the rapid expansion of the capital base in the final two years of the period.
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MVA Margin
Shockwave Medical 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 thousands) | ||||||
| Market value added (MVA)1 | 9,153,709) | 6,511,046) | 6,021,571) | 3,850,014) | 728,945) | |
| Revenue | 730,230) | 489,733) | 237,146) | 67,789) | 42,927) | |
| Performance Ratio | ||||||
| MVA margin2 | 1,253.54% | 1,329.51% | 2,539.18% | 5,679.41% | 1,698.10% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Abbott Laboratories | 383.09% | 323.76% | 384.46% | — | — | |
| Elevance Health Inc. | 43.23% | 46.56% | 54.23% | — | — | |
| Intuitive Surgical Inc. | 1,695.34% | 1,209.45% | 1,575.51% | — | — | |
| Medtronic PLC | 199.61% | 205.92% | 391.27% | — | — | |
| UnitedHealth Group Inc. | 95.85% | 109.81% | 130.39% | — | — | |
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 ÷ Revenue
= 100 × 9,153,709 ÷ 730,230 = 1,253.54%
3 Click competitor name to see calculations.
The financial trajectory between 2019 and 2023 is characterized by an aggressive expansion in both market value added and top-line revenue, although the relationship between these two metrics has shifted significantly over the period.
- Market Value Added (MVA) Trend
- A consistent and substantial upward trend in MVA is observed, rising from 728,945 thousand US dollars in 2019 to 9,153,709 thousand US dollars by the end of 2023. The most pronounced increase occurred between 2019 and 2020, where the value grew more than fivefold, indicating a sharp increase in investor confidence and perceived future growth potential during that interval.
- Revenue Growth Analysis
- Revenue exhibited exponential growth over the five-year window, increasing from 42,927 thousand US dollars in 2019 to 730,230 thousand US dollars in 2023. Significant acceleration is noted starting in 2021, where revenue more than tripled from the previous year, reflecting a rapid scaling of commercial operations.
- MVA Margin Dynamics
- The MVA margin experienced high volatility, peaking in 2020 at 5,679.41% before entering a period of steady decline to 1,253.54% by 2023. This downward trend in the margin, despite the absolute increase in MVA, is attributed to the fact that revenue growth began to outpace the rate of increase in market value added. The compression of the MVA margin suggests a transition from a valuation driven primarily by speculative future expectations toward a valuation more closely aligned with realized operational scale and revenue generation.
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