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.
Paying user area
Try for free
Steel Dynamics Inc. pages available for free this week:
- Income Statement
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Enterprise Value (EV)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Revenues
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Steel Dynamics Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
MVA
Steel Dynamics Inc., MVA calculation
US$ in thousands
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 »
- Market (fair) value of SDI
- The market value experienced a downward trend from 2017 to 2019, decreasing from approximately 13.7 billion US dollars to 8.3 billion US dollars. This was followed by a significant rebound in 2020, rising to about 12.8 billion, and continued growth into 2021, reaching approximately 16.9 billion. The pattern indicates a recovery and expansion phase after a period of decline.
- Invested capital
- The invested capital shows a generally positive trend over the period. It increased steadily from around 5.96 billion US dollars in 2017 to 6.78 billion in 2020, with modest annual increments. In 2021, a notable rise occurred, pushing capital invested to roughly 8.55 billion US dollars. This suggests ongoing capital investment and asset growth in the latter years.
- Market value added (MVA)
- Market value added, which reflects the difference between market value and invested capital, declined sharply from 2017 to 2019, dropping from approximately 7.75 billion US dollars to about 1.62 billion. This decline mirrors the falling market value during the same period. Subsequently, MVA experienced a strong recovery, increasing to nearly 6.0 billion in 2020 and then to approximately 8.37 billion in 2021, indicating enhanced value creation and improved market perceptions towards the company.
- Overall Insights
- The data reveals a period of contraction in market valuation and value added from 2017 through 2019, despite steady growth in invested capital. This may suggest increasing investment without commensurate immediate returns during these years. From 2020 onwards, both market value and MVA recovered strongly, outpacing invested capital growth, which points to improved operational performance, market conditions, or investor sentiment. The surge in invested capital in 2021 aligns with this positive market performance, potentially reflecting strategic investments fueling the company's expansion.
MVA Spread Ratio
Steel Dynamics 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 thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Freeport-McMoRan Inc. | ||||||
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 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added experienced significant fluctuations over the period analyzed. Initially, there was a sharp decrease from approximately 7.75 billion US dollars at the end of 2017 to about 1.62 billion by the close of 2019. However, the value rebounded strongly in the subsequent years, increasing to nearly 6 billion at the end of 2020 and further rising to approximately 8.37 billion by the end of 2021. This pattern indicates periods of fluctuating market valuation with a marked recovery and growth post-2019.
- Invested Capital
- Invested capital showed a general upward trend across the five years. Beginning at roughly 6 billion US dollars at the end of 2017, it increased steadily to over 6.7 billion by the end of 2019. The growth continued modestly through 2020 and accelerated in 2021, ending the period at approximately 8.55 billion. This consistent increase suggests ongoing investment or asset growth within the company during the period.
- MVA Spread Ratio
- The MVA spread ratio, representing the percentage relationship between market value added and invested capital, mirrored the volatility observed in the MVA figures. It sharply declined from a high of nearly 130% at the end of 2017 to about 24% by the end of 2019, reflecting a period of reduced market value relative to invested capital. Following this trough, the ratio improved significantly, climbing to 88.46% in 2020 and further to approximately 97.86% in 2021. Although the ratio did not return to its initial peak level, the recovery indicates enhanced market value generation from invested capital in the latter years.
- Overall Insights
- The data reflects a period of volatility in market perception and value realization during the first three years, with a notable recovery in the final two years. The consistent increase in invested capital suggests continuing investment activities, while the rebound in market value and MVA spread signifies improved market conditions or operational performance leading to increased value creation relative to capital invested.
MVA Margin
Steel Dynamics 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 thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Net sales | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Freeport-McMoRan Inc. | ||||||
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 sales
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added demonstrated considerable fluctuation over the observed period. Starting from a high point in 2017 at approximately 7.75 billion US dollars, it experienced a sharp decline through 2018 and 2019, reaching its lowest point around 1.62 billion US dollars. However, there was a substantial recovery in 2020, with MVA increasing to nearly 6.00 billion US dollars, and the upward trend continued into 2021, reaching approximately 8.37 billion US dollars, the highest value recorded in the timeframe.
- Net Sales
- Net sales exhibited an overall upward trend, albeit with some volatility. The value increased from around 9.54 billion US dollars in 2017 to a peak of approximately 11.82 billion US dollars in 2018. It then decreased in 2019 and 2020, with sales dropping to just below 10.46 billion and 9.60 billion US dollars, respectively. In 2021, net sales surged significantly to approximately 18.41 billion US dollars, indicating strong revenue growth.
- MVA Margin
- The MVA margin showed notable variability, declining steeply from 81.28% in 2017 to a low of 15.51% in 2019. This decline was followed by a recovery to 62.48% in 2020, after which it decreased again to 45.45% in 2021. This pattern suggests fluctuations in the efficiency of converting net sales into market value added over the years, with the margin being highly sensitive to shifts in market valuation and sales performance.