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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- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Common Stock Valuation Ratios
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2015
- Return on Assets (ROA) since 2015
- Price to Earnings (P/E) since 2015
- Price to Operating Profit (P/OP) since 2015
- Price to Sales (P/S) since 2015
- Analysis of Debt
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MVA
SolarEdge Technologies Inc., MVA calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2018-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
The financial data reflects significant changes in market valuation and invested capital over the five-year period ending in 2022.
- Market (fair) value of SolarEdge
- The market value exhibits strong growth overall, starting at approximately 1.83 billion USD in 2018, peaking sharply at around 17.26 billion USD in 2020. Following this peak, the value declined to about 13.25 billion USD in 2021 before increasing again to approximately 16.66 billion USD in 2022. This pattern suggests volatility with a major surge through 2020, a downward adjustment in 2021, and a partial recovery in the subsequent year.
- Invested capital
- Invested capital consistently increased each year, progressing from roughly 559 million USD in 2018 to over 2.6 billion USD in 2022. The growth was steady, with the largest absolute increase occurring between 2021 and 2022. This trend indicates ongoing investment and capital allocation into the company's operations.
- Market value added (MVA)
- Market value added, representing the difference between market value and invested capital, follows a similar trajectory to the market value. It rose from around 1.27 billion USD in 2018 to a peak of over 15.5 billion USD in 2020. Subsequently, MVA declined to approximately 11.55 billion USD in 2021 but recovered to about 14.05 billion USD in 2022. The MVA remains significantly positive, signaling that the market value exceeds capital invested by a substantial margin throughout the period, though the volatility mirrors that seen in market values.
MVA Spread Ratio
SolarEdge Technologies Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
Based on: 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), 10-K (reporting date: 2018-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2022 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added exhibited substantial growth from 2018 to 2020, rising from approximately 1.27 billion to over 15.5 billion US dollars. This trend indicates significant value creation during this period. However, the MVA experienced a decline in 2021 to around 11.55 billion before partially recovering in 2022 to approximately 14.05 billion. Despite this setback, the overall trend over the five years remains strongly positive.
- Invested Capital
- Invested capital grew steadily throughout the period, increasing from approximately 559 million US dollars in 2018 to about 2.61 billion in 2022. The most notable acceleration occurred between 2019 and 2020, nearly doubling the invested capital from around 910 million to 1.73 billion. This steady increase reflects ongoing investments in the company's operations and assets.
- MVA Spread Ratio
- The MVA spread ratio, representing the efficiency of value added relative to invested capital, showed a strong upward trend from 227.58% in 2018 to a peak of 895.17% in 2020. This indicates that the company was generating substantial value in relation to the capital invested during this time. However, the ratio declined in the subsequent years to 679.27% in 2021 and further to 538.52% in 2022, suggesting a decrease in value creation efficiency despite continued growth in absolute terms of MVA and invested capital.
MVA Margin
SolarEdge Technologies Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Revenues | ||||||
| Add: Increase (decrease) in deferred revenues | ||||||
| Adjusted revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
Based on: 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), 10-K (reporting date: 2018-12-31).
1 MVA. See details »
2 2022 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market value added (MVA)
- The market value added exhibited substantial growth from 2018 through 2020, increasing from approximately 1.27 billion to over 15.5 billion US dollars. This represents a significant expansion during this period. In 2021, the MVA decreased to about 11.55 billion US dollars, indicating a contraction compared to the previous year. However, in 2022, the MVA rebounded to approximately 14.05 billion US dollars, suggesting a partial recovery following the prior decline.
- Adjusted revenues
- Adjusted revenues showed a general upward trend over the five-year period. Starting at roughly 978 million US dollars in 2018, revenues increased sharply in 2019 to approximately 1.51 billion US dollars. A slight decrease occurred in 2020, with revenues declining to around 1.44 billion US dollars. From 2020 onwards, revenues experienced consistent growth, reaching nearly 2 billion US dollars in 2021 and then surging to over 3.15 billion US dollars in 2022, more than doubling the amount reported in 2018.
- MVA margin
- The MVA margin demonstrated significant volatility throughout the period. It peaked notably in 2020 at 1079.47%, indicating a very high ratio of market value added relative to adjusted revenues during that year. This was preceded by a steady increase from 130.12% in 2018 to 338.94% in 2019. Following the peak, the margin declined sharply to 579.57% in 2021 and further decreased to 445.38% in 2022, though it remained substantially higher than the initial levels observed in 2018 and 2019.