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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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Selected Financial Data since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Revenues
- Analysis of Debt
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MVA
Elevance Health Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Elevance Health
- The market value demonstrates an overall upward trend from 2020 through 2023, increasing from $97,799 million to $143,259 million. However, in 2024, there is a noticeable decline to $118,528 million, indicating a reduction in market valuation compared to the previous year.
- Invested capital
- The invested capital shows consistent growth over the entire five-year period. It rises steadily from $56,634 million in 2020 to $78,241 million in 2024, suggesting ongoing investment and expansion in capital assets.
- Market value added (MVA)
- MVA displays a significant increase from $41,165 million in 2020 to a peak of $74,258 million in 2021, followed by a slight decrease to $72,477 million in 2022 and minor recovery to $73,590 million in 2023. In 2024, there is a sharp decline to $40,287 million, reflecting a diminished market valuation relative to the capital invested.
- Overall Observations
- The company experienced strong growth in market valuation and value creation from 2020 until 2023. The continuous rise in invested capital supports a strategy of expansion. However, the year 2024 marks a reversal in market perception, with both market value and MVA declining significantly despite increased invested capital. This suggests potential challenges in generating corresponding market value from recent investments.
MVA Spread Ratio
Elevance Health Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added shows a rising trend from 41,165 million USD in 2020, peaking at 74,258 million USD in 2021. Subsequently, it slightly declined to 72,477 million USD in 2022 and remained relatively stable in 2023 at 73,590 million USD. However, a significant decrease is observed in 2024, where MVA dropped sharply to 40,287 million USD.
- Invested Capital
- Invested capital consistently increased over the reported periods. From 56,634 million USD in 2020, it grew steadily each year, reaching 78,241 million USD in 2024. This reflects ongoing capital deployment or asset base expansion across the five years.
- MVA Spread Ratio
- The MVA spread ratio, representing the return spread over capital cost as a percentage, follows a pattern similar to the MVA. It initially rose from 72.69% in 2020 to a peak of 116.25% in 2021, indicating improved value creation. Following this peak, the ratio gradually declined, standing at 108.49% in 2022, 105.63% in 2023, and falling sharply to 51.49% in 2024.
- Overall Insights
- The data indicates strong value creation and capital return performance in the early years, particularly in 2021. Although invested capital steadily expanded throughout the period, market value added and the associated MVA spread ratio experienced a marked downturn in 2024. This suggests a potential decline in market valuation relative to invested capital and a reduced spread between returns and cost of capital during the final reported year. The sharp decline in MVA and MVA spread ratio in 2024 may require further investigation into operational performance or external market factors impacting valuation.
MVA Margin
Elevance Health Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Operating revenue | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Operating revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
The analysis of the financial data reveals several notable trends across the reported periods.
- Market Value Added (MVA)
- The market value added experienced a significant increase from 41,165 million USD in 2020 to a peak of 74,258 million USD in 2021. This was followed by a slight decline in 2022 and 2023, with values of 72,477 million USD and 73,590 million USD respectively. However, 2024 shows a sharp decrease to 40,287 million USD, nearly halving the value from the previous year.
- Operating Revenue
- Operating revenue exhibits a consistent upward trend throughout the periods. It grew from 120,808 million USD in 2020 to 175,204 million USD in 2024, showing strong and steady revenue growth each year. The increments between years are substantial, indicating ongoing expansion in the company's core operations.
- MVA Margin (%)
- The MVA margin started at 34.07% in 2020, increased sharply to 54.23% in 2021, then gradually decreased over the next two years to 46.56% in 2022 and 43.23% in 2023. By 2024, the margin declined significantly to 22.99%, reflecting a reduced proportion of market value added relative to operating revenue.
Overall, while operating revenue has consistently grown over the years, the market value added and its margin have shown more volatility, with a peak in 2021 and a marked decline in 2024. This disparity suggests that although the company is generating higher revenues, its market value creation capacity relative to those revenues has weakened recently, particularly in the latest period observed.