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
Becton, Dickinson & Co., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of BD
- The market value showed a pronounced upward trend from September 2016 through September 2019, rising from $48,294 million to a peak of $91,399 million. However, it declined to $86,074 million in 2020 before recovering slightly to $88,932 million in 2021.
- Invested capital
- Invested capital exhibited consistent growth from 2016 to 2018, increasing from $22,258 million to $47,282 million. Subsequently, it decreased somewhat to $45,181 million in 2019, followed by minor fluctuations, ending at $45,278 million in 2021. This indicates a stabilization in capital investment after noticeable expansion in earlier years.
- Market value added (MVA)
- Market value added rose steadily between 2016 and 2019, climbing from $26,036 million to $46,218 million, signaling increasing market appreciation over invested capital. A decline occurred in 2020 to $39,762 million, paralleling the dip in market value, before recovering to $43,654 million in 2021. Overall, MVA remains significantly higher in later years compared to the initial period, suggesting sustained value creation despite recent volatility.
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MVA Spread Ratio
Becton, Dickinson & Co., MVA spread ratio calculation, comparison to benchmarks
| Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 43,654) | 39,762) | 46,218) | 39,501) | 36,105) | 26,036) | |
| Invested capital2 | 45,278) | 46,312) | 45,181) | 47,282) | 34,655) | 22,258) | |
| Performance Ratio | |||||||
| MVA spread ratio3 | 96.41% | 85.86% | 102.29% | 83.54% | 104.18% | 116.97% | |
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Abbott Laboratories | 266.78% | — | — | — | — | — | |
| Elevance Health Inc. | 116.25% | — | — | — | — | — | |
| Intuitive Surgical Inc. | 2,002.36% | — | — | — | — | — | |
| Medtronic PLC | 163.10% | — | — | — | — | — | |
| UnitedHealth Group Inc. | 265.59% | — | — | — | — | — | |
Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30).
1 MVA. See details »
2 Invested capital. See details »
3 2021 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 43,654 ÷ 45,278 = 96.41%
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added showed an overall upward trend from 2016 to 2021, increasing from approximately 26,036 million USD in 2016 to 43,654 million USD in 2021. Notably, there was a significant rise between 2016 and 2019, reaching a peak of 46,218 million USD in 2019. This was followed by a decline in 2020 to 39,762 million USD, after which MVA increased again in 2021.
- Invested Capital
- Invested capital experienced considerable growth during the analyzed period, starting at 22,258 million USD in 2016 and rising steadily to a peak of 47,282 million USD in 2018. From 2018 to 2021, the invested capital showed some fluctuation but remained relatively stable around the range of 45,000 to 46,000 million USD.
- MVA Spread Ratio
- The MVA spread ratio, representing the efficiency of value generation relative to invested capital, showed variability over time. It began very high at 116.97% in 2016, indicating strong value generation. This ratio decreased significantly in the following years, reaching its lowest point at 83.54% in 2018. Thereafter, it recovered somewhat, peaking at 102.29% in 2019 before fluctuating again and settling at 96.41% by 2021. The variations suggest fluctuating performance in maximization of market value relative to capital invested.
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MVA Margin
Becton, Dickinson & Co., MVA margin calculation, comparison to benchmarks
| Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 43,654) | 39,762) | 46,218) | 39,501) | 36,105) | 26,036) | |
| Revenues | 20,248) | 17,117) | 17,290) | 15,983) | 12,093) | 12,483) | |
| Performance Ratio | |||||||
| MVA margin2 | 215.60% | 232.30% | 267.31% | 247.14% | 298.56% | 208.57% | |
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Abbott Laboratories | 384.46% | — | — | — | — | — | |
| Elevance Health Inc. | 54.23% | — | — | — | — | — | |
| Intuitive Surgical Inc. | 1,575.51% | — | — | — | — | — | |
| Medtronic PLC | 391.27% | — | — | — | — | — | |
| UnitedHealth Group Inc. | 130.39% | — | — | — | — | — | |
Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30).
1 MVA. See details »
2 2021 Calculation
MVA margin = 100 × MVA ÷ Revenues
= 100 × 43,654 ÷ 20,248 = 215.60%
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added exhibited a general upward trend from 2016 through 2019, increasing from $26,036 million to $46,218 million, reflecting significant growth in the company’s market valuation. However, in 2020, there was a decline to $39,762 million, indicating a temporary reduction in market value, possibly linked to external economic factors. This value partially recovered in 2021, rising to $43,654 million, suggesting a rebound in market confidence.
- Revenues
- Revenue figures revealed fluctuations over the analyzed period. Initially, revenues slightly decreased from $12,483 million in 2016 to $12,093 million in 2017. Subsequently, there was a notable increase to $15,983 million in 2018 and further growth to $17,290 million in 2019. Revenues slightly decreased to $17,117 million in 2020, coinciding with the MVA decline. In 2021, revenues surged to $20,248 million, reaching the highest level in the observed period and indicating strong operational performance and growth.
- MVA Margin
- The MVA margin, representing the ratio of market value added to revenues, showed significant variability. It peaked at 298.56% in 2017 following a revenue dip, indicating an overproportionate increase in market valuation relative to revenues. Thereafter, it declined steadily to 215.6% in 2021. Despite fluctuations, the margin remained well above 200%, suggesting sustained strong market valuation relative to revenue generation across the years.
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