Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Vertex Pharmaceuticals Inc. (NASDAQ:VRTX)

Market Value Added (MVA)

Advanced level


MVA

Vertex Pharmaceuticals Inc., MVA calculation

US$ in thousands

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Fair value of long-term obligations1 577,371  586,821  583,902  821,335  810,981 
Operating lease liability 95,796  857,333  921,716  948,427  930,631 
Market value of common equity 62,247,796  47,360,439  40,861,376  21,298,601  21,034,481 
Preferred stock, $0.01 par value; none issued and outstanding —  —  —  —  — 
Noncontrolling interest —  —  13,727  181,609  153,661 
Less: Marketable securities 698,972  518,108  423,254  250,612  327,694 
Market (fair) value of Vertex 62,221,991  48,286,485  41,957,467  22,999,360  22,602,061 
Less: Invested capital2 4,862,095  3,860,918  3,141,760  2,969,895  2,615,806 
MVA 57,359,896  44,425,567  38,815,707  20,029,465  19,986,254 

Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-16).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA Vertex Pharmaceuticals Inc.’s market (fair) value less invested capital. Vertex Pharmaceuticals Inc.’s MVA increased from 2017 to 2018 and from 2018 to 2019.

MVA Spread Ratio

Vertex Pharmaceuticals Inc., MVA spread ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in thousands)
Market value added (MVA)1 57,359,896  44,425,567  38,815,707  20,029,465  19,986,254 
Invested capital2 4,862,095  3,860,918  3,141,760  2,969,895  2,615,806 
Performance Ratio
MVA spread ratio3 1,179.74% 1,150.65% 1,235.48% 674.42% 764.06%
Benchmarks
MVA Spread Ratio, Competitors4
Abbott Laboratories 203.80% 163.05% 105.68% 115.20% 103.19%
AbbVie Inc. 236.34% 363.57% 399.31% 176.28% 173.21%
Amgen Inc. 341.92% 418.34% 430.42% 289.63% 235.60%
Biogen Inc. 341.43% 414.66% 501.05% 357.29% 453.23%
Bristol-Myers Squibb Co. 90.05% 357.63% 562.86% 434.48% 604.37%
Eli Lilly & Co. 601.09% 443.71% 317.93% 313.14% 284.18%
Gilead Sciences Inc. 218.86% 173.55% 353.60% 375.87% 385.39%
Illumina Inc. 789.11% 998.68% 841.95% 777.45% 794.02%
Johnson & Johnson 335.85% 288.60% 261.52% 301.73% 285.18%
Merck & Co. Inc. 328.56% 362.76% 219.59% 251.63% 139.01%
Pfizer Inc. 95.96% 163.95% 129.91% 85.80% 81.93%
Regeneron Pharmaceuticals Inc. 463.34% 580.61% 593.24% 958.29% 1,166.32%
Zoetis Inc. 667.66% 408.21% 480.52% 354.22% 273.14%

Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-16).

1 MVA. See details »

2 Invested capital. See details »

3 2019 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 57,359,896 ÷ 4,862,095 = 1,179.74%

4 Click competitor name to see calculations.

Performance ratio Description The company
MVA spread ratio The ratio of MVA to invested capital. It measures the efficiency with which investors’ capital investment has translated into a franchise value and into an aggregate net present value premium. Vertex Pharmaceuticals Inc.’s MVA spread ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

MVA Margin

Vertex Pharmaceuticals Inc., MVA margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in thousands)
Market value added (MVA)1 57,359,896  44,425,567  38,815,707  20,029,465  19,986,254 
Revenues 4,162,821  3,047,597  2,488,652  1,702,177  1,032,336 
Performance Ratio
MVA margin2 1,377.91% 1,457.72% 1,559.71% 1,176.70% 1,936.02%
Benchmarks
MVA Margin, Competitors3
Abbott Laboratories 368.47% 311.69% 252.28% 250.26% 153.78%
AbbVie Inc. 446.13% 371.34% 640.27% 331.71% 332.19%
Amgen Inc. 575.79% 468.33% 476.30% 427.69% 392.30%
Biogen Inc. 335.84% 405.96% 509.35% 402.61% 467.80%
Bristol-Myers Squibb Co. 345.41% 300.74% 448.04% 396.64% 527.50%
Eli Lilly & Co. 578.77% 464.62% 310.56% 336.26% 316.65%
Gilead Sciences Inc. 318.14% 285.14% 338.78% 251.48% 329.29%
Illumina Inc. 1,112.96% 1,195.33% 1,100.24% 931.69% 981.01%
Johnson & Johnson 396.88% 357.88% 364.69% 353.81% 303.53%
Merck & Co. Inc. 376.50% 420.85% 272.23% 334.87% 221.21%
Pfizer Inc. 224.34% 310.56% 254.28% 199.73% 178.61%
Regeneron Pharmaceuticals Inc. 382.11% 537.12% 496.04% 662.31% 743.95%
Zoetis Inc. 1,049.26% 654.82% 679.17% 489.40% 399.11%

Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-16).

1 MVA. See details »

2 2019 Calculation
MVA margin = 100 × MVA ÷ Revenues
= 100 × 57,359,896 ÷ 4,162,821 = 1,377.91%

3 Click competitor name to see calculations.

Performance ratio Description The company
MVA margin The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value. Vertex Pharmaceuticals Inc.’s MVA margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019.