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
Allergan PLC, MVA calculation
US$ in thousands
Based on: 10-K (reporting date: 2019-12-31), 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).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Allergan PLC market (fair) value less invested capital. | Allergan PLC MVA decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level. |
MVA Spread Ratio
Allergan PLC, MVA spread ratio calculation, comparison to benchmarks
| 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 | 5,744,199) | (22,152,605) | (17,937,038) | (2,272,512) | 37,782,769) | |
| Invested capital2 | 80,268,300) | 91,098,773) | 103,552,681) | 111,246,522) | 127,501,981) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 7.16% | -24.32% | -17.32% | -2.04% | 29.63% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| AbbVie Inc. | 236.51% | — | — | — | — | |
| Amgen Inc. | 341.92% | — | — | — | — | |
| Bristol-Myers Squibb Co. | 90.05% | — | — | — | — | |
| Danaher Corp. | 135.15% | — | — | — | — | |
| Eli Lilly & Co. | 601.09% | — | — | — | — | |
| Gilead Sciences Inc. | 226.14% | — | — | — | — | |
| Johnson & Johnson | 335.85% | — | — | — | — | |
| Merck & Co. Inc. | 328.56% | — | — | — | — | |
| Pfizer Inc. | 95.96% | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 460.29% | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 171.11% | — | — | — | — | |
| Zoetis Inc. | 667.66% | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 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).
1 MVA. See details »
2 Invested capital. See details »
3 2019 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 5,744,199 ÷ 80,268,300 = 7.16%
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. | Allergan PLC MVA spread ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
MVA Margin
Allergan PLC, MVA margin calculation, comparison to benchmarks
| 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 | 5,744,199) | (22,152,605) | (17,937,038) | (2,272,512) | 37,782,769) | |
| Net revenues | 16,088,900) | 15,787,400) | 15,940,700) | 14,570,600) | 15,071,000) | |
| Add: Increase (decrease) in deferred revenue | (9,500) | (1,800) | 22,200) | (2,500) | (8,100) | |
| Adjusted net revenues | 16,079,400) | 15,785,600) | 15,962,900) | 14,568,100) | 15,062,900) | |
| Performance Ratio | ||||||
| MVA margin2 | 35.72% | -140.33% | -112.37% | -15.60% | 250.83% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| AbbVie Inc. | 446.12% | — | — | — | — | |
| Amgen Inc. | 575.79% | — | — | — | — | |
| Bristol-Myers Squibb Co. | 345.41% | — | — | — | — | |
| Danaher Corp. | 438.18% | — | — | — | — | |
| Eli Lilly & Co. | 578.77% | — | — | — | — | |
| Gilead Sciences Inc. | 321.38% | — | — | — | — | |
| Johnson & Johnson | 396.88% | — | — | — | — | |
| Merck & Co. Inc. | 376.50% | — | — | — | — | |
| Pfizer Inc. | 224.34% | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 382.11% | — | — | — | — | |
| Thermo Fisher Scientific Inc. | 352.63% | — | — | — | — | |
| Zoetis Inc. | 1,049.26% | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 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).
1 MVA. See details »
2 2019 Calculation
MVA margin = 100 × MVA ÷ Adjusted net revenues
= 100 × 5,744,199 ÷ 16,079,400 = 35.72%
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. | Allergan PLC MVA margin ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |