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
eBay Inc. pages available for free this week:
- Cash Flow Statement
- Analysis of Short-term (Operating) Activity Ratios
- Dividend Discount Model (DDM)
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to eBay Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
MVA
eBay Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
The data presents information on the market value, invested capital, and market value added (MVA) of the company over a five-year period from 2014 to 2018.
- Market (fair) value of the company
- The market value shows a significant decline from 2014 to 2015, dropping from 64,563 million US dollars to 27,359 million US dollars. After this steep decrease, there is a steady recovery trend with the value increasing to 34,748 million in 2016 and further to 44,105 million in 2017. However, in 2018, the market value declines again to 34,350 million US dollars, representing a fluctuation in market perception or valuation of the company.
- Invested capital
- Invested capital follows a decreasing trend over the five-year period, starting from 20,937 million US dollars in 2014 and dropping sharply to 7,328 million in 2015. It remains relatively stable from 2015 to 2018, fluctuating slightly between 6,903 million and 7,687 million US dollars, indicating a reduction and stabilization of capital employed in the business after 2014.
- Market value added (MVA)
- The MVA, which measures the difference between market value and invested capital, reflects a similar pattern to the market value. It decreases notably from 43,627 million US dollars in 2014 to 20,030 million in 2015, then increases steadily, reaching a peak of 37,202 million in 2017. In 2018, it decreases again to 26,753 million US dollars. This indicates that although the market value fluctuates, the value created above the invested capital also follows a comparable trend with an overall decline from 2014 to 2018 but with an intermediate recovery period.
MVA Spread Ratio
eBay Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| 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: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2018 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
The financial data reflects several key trends over the analyzed five-year period ending in 2018.
- Market Value Added (MVA)
- The MVA experienced a significant decline from 43,627 million US dollars in 2014 to 20,030 million in 2015, reflecting a sharp decrease in perceived company value relative to invested capital. This was followed by a recovery phase reaching 37,202 million in 2017 before falling again to 26,753 million in 2018. The fluctuations indicate volatility in market perceptions or company performance during the period.
- Invested Capital
- Invested capital demonstrated a downward trend from 20,937 million US dollars in 2014 to a low of 6,903 million in 2017. A slight recovery was observed in 2018, with invested capital increasing to 7,597 million. This reduction over the years could suggest divestitures, asset disposals, or changes in capital allocation strategies.
- MVA Spread Ratio
- This ratio, indicative of value creation relative to invested capital, exhibited a strong upward trend throughout the period. Starting at 208.37% in 2014, it increased steadily to peak at 538.88% in 2017 before decreasing to 352.15% in 2018. The high spread ratio, especially from 2016 to 2017, suggests improved capital efficiency or market factors favorably impacting the perceived economic value generated by the invested capital.
Overall, the data presents a scenario where despite declining invested capital, the company enhanced value creation efficiency as shown by the MVA spread ratio. However, the volatility in MVA and invested capital during the period highlights variability that might warrant further investigation into operational or market-related causes.
MVA Margin
eBay Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Net revenues | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted net revenues | ||||||
| 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: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
1 MVA. See details »
2 2018 Calculation
MVA margin = 100 × MVA ÷ Adjusted net revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA) Trends
- The Market Value Added exhibited a fluctuating pattern over the observed period. Beginning at US$43,627 million in 2014, it declined sharply to US$20,030 million in 2015. Subsequently, the MVA increased to US$27,061 million in 2016 and further to US$37,202 million in 2017, indicating a period of recovery and growth. However, in 2018, the MVA again declined significantly to US$26,753 million. Overall, the MVA did not maintain a steady upward trajectory, showing volatility across the years.
- Adjusted Net Revenues Analysis
- Adjusted net revenues displayed an overall increasing trend throughout the five-year period. Starting from US$17,932 million in 2014, revenues sharply decreased to US$8,590 million in 2015. From that point, there was a consistent upward movement, reaching US$8,983 million in 2016, US$9,574 million in 2017, and finally US$10,779 million in 2018. This pattern reflects a recovery and gradual growth in revenue generation following the initial drop.
- MVA Margin Observation
- The MVA margin, expressed as a percentage, initially decreased slightly from 243.29% in 2014 to 233.18% in 2015, aligning with the decline seen in Market Value Added and revenues. It then rose sharply to 301.25% in 2016 and peaked at 388.57% in 2017, indicating enhanced value creation relative to revenue during these years. In 2018, the margin fell to 248.2%, signaling a reduction in this efficiency measure but remaining higher than the 2015 level. The margin demonstrates substantial variability over the period, with a notable peak in 2017.
- Overall Insights
- The financial data indicate a period of volatility with a notable dip in 2015 across key metrics, followed by recovery phases in subsequent years. Despite recovery in adjusted net revenues and Market Value Added after the 2015 decline, neither metric reached the 2014 levels by 2018. The MVA margin's fluctuation suggests varying effectiveness in value creation relative to revenue during the period, peaking in 2017 before declining the next year. These trends highlight challenges in sustaining consistent growth and value generation.