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
Teradyne 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 financial performance over the five-year period from 2019 to 2023 is characterized by significant volatility in market valuation and a corresponding impact on Market Value Added (MVA).
- Market Value Trends
- A substantial increase in market capitalization occurred between 2019 and 2020, where the value rose from approximately $10.92 billion to a peak of $23.23 billion. Following this peak, a consistent downward correction took place over the subsequent three years, with the market value settling at $15.59 billion by December 31, 2023.
- Invested Capital Stability
- Invested capital demonstrated a more stable and gradual trajectory compared to market valuation. A steady increase was observed from $1.85 billion in 2019 to a peak of $2.59 billion in 2022. A slight contraction followed in 2023, with invested capital decreasing to $2.42 billion.
- Market Value Added (MVA) Analysis
- MVA exhibited a sharp surge in 2020, reaching $21.05 billion, indicating a period of high investor confidence and perceived future growth potential far exceeding the capital invested. This figure declined steadily in 2021 and 2022, eventually stabilizing at $13.18 billion in 2023. Despite the decline from the 2020 peak, the MVA remained significantly higher in 2023 than it was in 2019, suggesting that the company continues to maintain a value creation profile well above its invested capital base.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
MVA Spread Ratio
Teradyne Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | 13,175,548) | 13,208,929) | 15,852,922) | 21,051,234) | 9,076,763) | |
| Invested capital2 | 2,415,179) | 2,587,403) | 2,564,053) | 2,183,213) | 1,845,838) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 545.53% | 510.51% | 618.28% | 964.23% | 491.74% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Advanced Micro Devices Inc. | 370.13% | 119.87% | 2,219.60% | — | — | |
| Analog Devices Inc. | 117.77% | 103.56% | 117.94% | 210.89% | — | |
| Applied Materials Inc. | 671.06% | 515.59% | 815.05% | 555.54% | — | |
| Broadcom Inc. | 780.11% | 327.90% | 373.48% | 237.62% | — | |
| Intel Corp. | 136.50% | 56.17% | 138.47% | — | — | |
| KLA Corp. | 749.49% | 664.85% | 735.96% | — | — | |
| Lam Research Corp. | 511.21% | 404.85% | 617.13% | — | — | |
| Marvell Technology Inc. | 97.37% | 200.17% | 270.10% | — | — | |
| Micron Technology Inc. | 66.27% | 17.46% | 81.70% | — | — | |
| NVIDIA Corp. | 2,593.21% | 3,533.65% | 2,455.53% | — | — | |
| Qualcomm Inc. | 331.81% | 372.61% | 739.14% | 815.45% | — | |
| Texas Instruments Inc. | 565.70% | 853.39% | 887.48% | — | — | |
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 × 13,175,548 ÷ 2,415,179 = 545.53%
4 Click competitor name to see calculations.
The financial data indicates a period of significant volatility in market value creation between 2019 and 2023, characterized by a substantial peak in 2020 followed by a corrective phase and subsequent stabilization.
- Market Value Added (MVA)
- A sharp increase in MVA is observed from 2019 to 2020, where the value rose from approximately $9.08 billion to a peak of $21.05 billion. Following this surge, MVA experienced a downward trend, declining to $15.85 billion in 2021 and further to $13.21 billion in 2022, before remaining relatively flat at $13.18 billion by the end of 2023.
- Invested Capital
- Invested capital demonstrated a consistent upward trajectory from 2019 through 2022, increasing from $1.85 billion to a peak of $2.59 billion. A slight contraction occurred in 2023, with capital decreasing to $2.42 billion, suggesting a potential reduction in the capital base or a shift in asset utilization.
- MVA Spread Ratio
- The MVA spread ratio mirrors the volatility seen in the total MVA, reaching a peak of 964.23% in 2020. This ratio declined significantly in 2021 and 2022 to 618.28% and 510.51%, respectively. A modest recovery is noted in 2023, with the ratio increasing to 545.53%, indicating that the market continues to value the organization significantly above its invested capital despite the retreat from the 2020 high.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
MVA Margin
Teradyne Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | 13,175,548) | 13,208,929) | 15,852,922) | 21,051,234) | 9,076,763) | |
| Revenues | 2,676,298) | 3,155,045) | 3,702,881) | 3,121,469) | 2,294,965) | |
| Add: Increase (decrease) in deferred revenue and customer advances | (56,330) | (7,690) | 8,085) | 42,171) | 40,389) | |
| Adjusted revenues | 2,619,968) | 3,147,355) | 3,710,966) | 3,163,640) | 2,335,354) | |
| Performance Ratio | ||||||
| MVA margin2 | 502.89% | 419.68% | 427.19% | 665.41% | 388.67% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Advanced Micro Devices Inc. | 944.62% | 297.25% | 836.71% | — | — | |
| Analog Devices Inc. | 422.86% | 388.08% | 757.72% | 685.43% | — | |
| Applied Materials Inc. | 449.88% | 297.74% | 520.10% | 422.74% | — | |
| Broadcom Inc. | 1,364.98% | 613.40% | 879.63% | 656.02% | — | |
| Intel Corp. | 231.83% | 78.99% | 155.07% | — | — | |
| KLA Corp. | 595.34% | 562.11% | 725.36% | — | — | |
| Lam Research Corp. | 448.84% | 298.83% | 497.72% | — | — | |
| Marvell Technology Inc. | 329.04% | 893.35% | 828.99% | — | — | |
| Micron Technology Inc. | 225.16% | 29.56% | 135.02% | — | — | |
| NVIDIA Corp. | 2,051.63% | 2,368.66% | 1,919.74% | — | — | |
| Qualcomm Inc. | 291.70% | 248.18% | 445.16% | 615.38% | — | |
| Texas Instruments Inc. | 729.45% | 748.35% | 793.86% | — | — | |
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 ÷ Adjusted revenues
= 100 × 13,175,548 ÷ 2,619,968 = 502.89%
3 Click competitor name to see calculations.
The financial performance of Teradyne Inc. between 2019 and 2023 is characterized by significant volatility in market value and a cyclical trend in adjusted revenues, directly influencing the MVA margin.
- Market Value Added (MVA) Trends
- A substantial increase in MVA is observed between 2019 and 2020, where value rose from 9,076,763 thousand US$ to a peak of 21,051,234 thousand US$. Following this peak, a consistent downward trajectory occurred, with the value declining to 15,852,922 thousand US$ in 2021 and further stabilizing around 13,175,548 thousand US$ by the end of 2023.
- Adjusted Revenue Trajectory
- Adjusted revenues exhibited a growth phase from 2019 to 2021, increasing from 2,335,354 thousand US$ to a maximum of 3,710,966 thousand US$. This growth was reversed in the subsequent two years, with revenues contracting to 3,147,355 thousand US$ in 2022 and continuing to decline to 2,619,968 thousand US$ by December 31, 2023.
- MVA Margin Analysis
- The MVA margin showed extreme fluctuation over the five-year period. An initial surge is noted in 2020, where the margin reached a peak of 665.41%. A subsequent correction occurred in 2021 and 2022, with the margin falling to 427.19% and 419.68%, respectively. Notably, in 2023, the MVA margin rose to 502.89% despite the simultaneous decline in both absolute MVA and adjusted revenues, indicating that the market value sustained its level more effectively than the revenue base contracted.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?