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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- Statement of Comprehensive Income
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Capital Asset Pricing Model (CAPM)
- Net Profit Margin since 2019
- Return on Assets (ROA) since 2019
- Price to Earnings (P/E) since 2019
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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 »
The analysis of the annual financial data reveals several significant trends in the market and invested capital of the company over the five-year period from 2019 to 2023.
- Market (fair) value
- The market value of the company displayed a consistent and substantial upward trajectory. Starting at approximately 888 million USD in 2019, it surged to nearly 3.9 billion USD in 2020, increased further to about 6.2 billion USD in 2021, continued rising to roughly 6.8 billion USD in 2022, and reached nearly 9.8 billion USD by the end of 2023. This represents a more than tenfold increase from 2019 to 2023, indicating strong market confidence and possibly reflecting positive business developments or investor sentiment.
- Invested capital
- Invested capital showed a different pattern, beginning at about 159 million USD in 2019, then decreasing to approximately 91 million USD in 2020. After this decline, the invested capital increased steadily each year, reaching around 174 million USD in 2021, 318 million USD in 2022, and significantly growing to about 672 million USD in 2023. This pattern suggests initial contraction or asset optimization followed by considerable investment or capital expansion in recent years.
- Market Value Added (MVA)
- Market Value Added, which reflects the difference between market value and invested capital, mirrors the market value trend closely. The MVA increased dramatically from about 729 million USD in 2019 to almost 3.9 billion USD in 2020, then continued climbing to approximately 6.0 billion USD in 2021, 6.5 billion USD in 2022, and peaked near 9.2 billion USD by 2023. The steady increase in MVA indicates growing value creation over the invested capital, reaffirming strong market performance and value generation.
In summary, the data demonstrates robust growth and market valuation expansion, accompanied by increased invested capital since 2020. The marked increase in market value and MVA suggests significant value creation, whereas the rising invested capital from 2021 onwards may imply intensifying investments to support this growth trajectory.
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 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group 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 demonstrated a significant upward trend over the five-year period. Starting at approximately 729 million USD in 2019, it more than quintupled by 2020, reaching nearly 3.85 billion USD. This growth continued steadily through 2021 and 2022, culminating at over 9.15 billion USD by the end of 2023. This progression indicates a robust increase in market valuation relative to the invested capital.
- Invested Capital
- Invested capital exhibited a variable pattern with an initial decline from about 158.7 million USD in 2019 to 91.3 million USD in 2020, possibly reflecting divestments or capital returns. From 2020 onwards, invested capital increased substantially and consistently, reaching 672.5 million USD by 2023. This expansion suggests ongoing investment activity or growth initiatives being funded over these years.
- MVA Spread Ratio
- The MVA spread ratio, expressed as a percentage, showed a marked decline over the analyzed period despite starting exceptionally high. It peaked at an extreme level of 4218.08% in 2020 before sequentially decreasing to 3455.61% in 2021, 2047.13% in 2022, and finally 1361.22% in 2023. Although the ratio remains substantially above 1000%, indicating continued creation of market value above invested capital, the downward trajectory reflects a moderation in the relative spread or market premium over invested resources.
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 | ||||||
| Revenue | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group 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 ÷ Revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added demonstrated a significant upward trend over the five-year period. Beginning at approximately 729 million USD in 2019, it surged dramatically to over 3.85 billion USD in 2020, marking the most substantial year-over-year increase. Following this, the MVA continued to increase, reaching approximately 6.02 billion USD in 2021, 6.51 billion USD in 2022, and ultimately peaking at about 9.15 billion USD in 2023. This pattern indicates substantial growth in the company's value as perceived by the market.
- Revenue
- Revenue exhibited a consistent and strong growth trajectory across the timeframe. Starting at around 42.9 million USD in 2019, the revenue increased to 67.8 million USD in 2020. Thereafter, a pronounced acceleration occurred, with revenue reaching 237.1 million USD in 2021, more than doubling to 489.7 million USD in 2022, and achieving a peak of 730.2 million USD in 2023. This growth suggests expanding operational scale and potentially heightened market penetration or product acceptance.
- MVA Margin
- The MVA margin, which compares Market Value Added to Revenue, showed considerable fluctuation over the period studied. It started at a high level of 1698.1% in 2019, then spiked sharply to a peak of 5679.41% in 2020, before experiencing a decline to 2539.18% in 2021. In subsequent years, the margin continued to contract, falling to 1329.51% in 2022 and further to 1253.54% in 2023. Despite this decline, the margins remained substantially elevated, implying that the market value grew at a rate significantly exceeding revenue increases, although the efficiency in converting revenue to market value appeared to decrease after the initial surge.
- Summary
- Overall, the data indicates robust growth in both market value and revenue over the five years, with MVA increasing by more than twelvefold and revenue by nearly seventeenfold. The initial sharp rise in MVA margin in 2020 reflects a period of rapid investor confidence or market revaluation, followed by a gradual normalization. The continuous revenue growth paired with expanding market value suggests successful business expansion and positive investor sentiment, albeit with a declining rate of market value added relative to revenue in the later years.