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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- Income Statement
- Statement of Comprehensive Income
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Return on Assets (ROA) since 2008
- Price to Operating Profit (P/OP) since 2008
- Price to Sales (P/S) since 2008
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MVA
Ulta Beauty Inc., MVA calculation
US$ in thousands
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).
2 Invested capital. See details »
- Market (fair) value of Ulta Beauty
- The market value demonstrates significant fluctuations over the examined periods. Starting at approximately 14.5 billion US dollars in early 2018, it nearly doubled to around 22.7 billion in early 2019. In the subsequent year, early 2020, the market value sharply declined to about 11.7 billion, reflecting a substantial reduction. However, it recovered notably in early 2021, reaching nearly 18.9 billion, and continued to increase in the following years, attaining approximately 22.5 billion in early 2022 and further rising to around 27.7 billion by early 2023. This pattern indicates volatility with a strong recovery and growth trend in the recent years.
- Invested capital
- The invested capital remained relatively stable over the years, with values fluctuating between roughly 3.7 billion and 4.3 billion US dollars. It started at about 3.9 billion in early 2018, increased modestly to approximately 4.3 billion in early 2019, then decreased to near 4.0 billion in early 2020. Subsequent years saw minor variations, with the lowest point recorded in early 2022 at about 3.7 billion, before rising again to roughly 4.1 billion by early 2023. Overall, the capital invested maintained a consistent range without drastic changes.
- Market value added (MVA)
- The Market Value Added followed a trend similar to the market value, evidencing significant volatility aligned with market fluctuations. Starting at about 10.6 billion US dollars in early 2018, it increased substantially to approximately 18.4 billion in early 2019, then dropped sharply to around 7.7 billion in early 2020. The MVA then rebounded considerably to roughly 14.7 billion in early 2021, further increasing to about 18.8 billion in early 2022, and reaching approximately 23.6 billion by early 2023. This trajectory highlights a strong recovery and growing value creation relative to invested capital after the downturn in early 2020.
MVA Spread Ratio
Ulta Beauty Inc., MVA spread ratio calculation, comparison to benchmarks
| Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Market value added (MVA)1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| MVA spread ratio3 | |||||||
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Amazon.com Inc. | |||||||
| Home Depot Inc. | |||||||
| Lowe’s Cos. Inc. | |||||||
| TJX Cos. Inc. | |||||||
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).
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 exhibits significant fluctuations over the analyzed periods. Starting at approximately 10.56 billion USD in early 2018, it nearly doubled by early 2019, reaching around 18.37 billion USD. This was followed by a sharp decline in 2020 to about 7.69 billion USD. The MVA then recovered steadily, increasing to 14.74 billion USD in 2021, and continuing its upward trend to reach approximately 23.58 billion USD by early 2023, marking the highest point in the series.
- Invested Capital
- Invested capital shows a relatively stable pattern with minor fluctuations. It started at around 3.94 billion USD in early 2018, increased modestly to approximately 4.34 billion USD by early 2019, followed by a decrease to about 3.97 billion USD in 2020. The invested capital then experienced a slight increase in 2021 (around 4.18 billion USD), dipped again in 2022 to 3.68 billion USD, and rose once more to roughly 4.12 billion USD in 2023. Overall, the invested capital remained within a range between 3.68 and 4.34 billion USD without significant growth or decline.
- MVA Spread Ratio
- The MVA spread ratio displays notable volatility alongside a general upward trajectory. Initially at 268.06% in early 2018, it surged to a peak of 423.39% in 2019. Subsequently, it declined sharply to 193.76% in 2020. From 2020 onwards, the ratio demonstrated strong recovery and growth, rising to 352.35% in 2021, then to 511.20% in 2022, and finally reaching 572.72% in early 2023. This upward trend in the MVA spread ratio, especially post-2020, indicates an increasingly efficient utilization of invested capital in creating market value.
- Overall Analysis
- The financial data reflects a company experiencing considerable volatility in market value added, likely influenced by external market factors or operational challenges, particularly noted in the sharp decline in 2020. Despite this, invested capital remained comparatively steady, suggesting consistent capital deployment strategy or asset base. The recovery and eventual surpassing of previous MVA peaks from 2021 onward indicates a robust rebound phase, supported by an improving MVA spread ratio which suggests enhanced value generation relative to capital invested. The data highlights resilience and potential growing efficiency in value creation over the examined period.
MVA Margin
Ulta Beauty Inc., MVA margin calculation, comparison to benchmarks
| Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Market value added (MVA)1 | |||||||
| Net sales | |||||||
| Add: Increase (decrease) in deferred revenue | |||||||
| Adjusted net sales | |||||||
| Performance Ratio | |||||||
| MVA margin2 | |||||||
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Amazon.com Inc. | |||||||
| Home Depot Inc. | |||||||
| Lowe’s Cos. Inc. | |||||||
| TJX Cos. Inc. | |||||||
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).
1 MVA. See details »
2 2023 Calculation
MVA margin = 100 × MVA ÷ Adjusted net sales
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added exhibited significant fluctuations over the examined period. Initial growth from approximately 10.56 billion in early 2018 to 18.37 billion in early 2019 was followed by a steep decline to around 7.69 billion in early 2020. Subsequently, the MVA rebounded, rising to approximately 14.74 billion in early 2021, increasing further to 18.84 billion in early 2022, and reaching a peak of roughly 23.58 billion in early 2023. This pattern suggests volatility possibly influenced by external market conditions or internal company factors during 2019 and 2020, with strong recovery and growth noted in the subsequent years.
- Adjusted Net Sales
- Adjusted net sales showed an overall upward trajectory with some irregularities. From around 5.88 billion in early 2018, sales increased steadily to approximately 7.43 billion by early 2020. However, there was a noticeable decline in early 2021 to roughly 6.19 billion. After this dip, adjusted net sales surged significantly, reaching about 8.71 billion in early 2022 and 10.25 billion in early 2023. This indicates resilience and strong sales growth post-2021 despite the temporary setback.
- MVA Margin
- The MVA margin, representing the ratio of market value added to adjusted net sales, reflected considerable volatility. Starting at 179.49% in early 2018, it increased sharply to 270.04% in early 2019. Following this peak, the margin dropped substantially to 103.34% in early 2020, before rebounding to 238.22% in early 2021. It then decreased somewhat to 216.25% in early 2022, rising again to 230.1% in early 2023. These fluctuations indicate varying profitability or market valuation relative to sales over time, with particularly strong valuation multiples before 2020 and recovering strength in recent years.
- Overall Insights
- The data reveals a cyclical pattern with pronounced volatility in market valuation and sales performance around the 2020 period, which may be linked to broad market disruptions. The recovery phase starting in 2021 is marked by robust sales growth and renewed investor confidence, as evidenced by rising MVA and stable MVA margins. The combined trends suggest adaptive business strategies and a positive growth outlook in the near term following a volatile phase.