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
Boston Scientific Corp., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value
- The market value exhibited a generally upward trend over the five-year period. Starting at approximately $62.8 billion in 2018, it increased to around $67.1 billion in 2019, followed by a slight decline to about $66.2 billion in 2020. Subsequently, it rebounded to $73.0 billion in 2021 and continued to rise to $76.3 billion by the end of 2022, indicating increasing investor confidence and company valuation over time.
- Invested capital
- Invested capital steadily increased throughout the period. From $16.0 billion in 2018, it rose significantly to $20.4 billion in 2019 and continued to grow incrementally each year, reaching $22.9 billion in 2022. This consistent growth in invested capital suggests ongoing investments in the company's operations or assets, reflecting expansion or enhancement efforts.
- Market value added (MVA)
- The market value added, which measures the difference between market value and invested capital, showed a fluctuating but overall positive trend. It started at $46.7 billion in 2018, remained relatively stable around $46.7 billion in 2019, then declined to $45.1 billion in 2020. Afterward, it increased sharply to $51.0 billion in 2021 and further to $53.4 billion by 2022. This upward movement suggests improving market perception of value creation beyond the invested capital base.
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MVA Spread Ratio
Boston Scientific Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 53,436) | 50,980) | 45,107) | 46,696) | 46,744) | |
| Invested capital2 | 22,868) | 22,038) | 21,053) | 20,389) | 16,047) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 233.67% | 231.33% | 214.26% | 229.03% | 291.30% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Abbott Laboratories | 230.60% | 266.78% | — | — | — | |
| Elevance Health Inc. | 108.49% | 116.25% | — | — | — | |
| Intuitive Surgical Inc. | 1,400.02% | 2,002.36% | — | — | — | |
| Medtronic PLC | 93.80% | 163.10% | — | — | — | |
| UnitedHealth Group Inc. | 214.27% | 265.59% | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2022 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 53,436 ÷ 22,868 = 233.67%
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added shows a fluctuating yet overall positive trend over the five-year period. Beginning at 46,744 million US dollars in 2018, the MVA slightly decreased in 2019 and further declined in 2020 to 45,107 million. However, from 2020 onward, the MVA demonstrated recovery, increasing significantly in 2021 to 50,980 million and continuing to rise in 2022 to 53,436 million. This pattern suggests a period of initial contraction followed by strong market confidence and growth in the latter years.
- Invested Capital
- Invested capital steadily increased throughout the period under consideration. Starting at 16,047 million US dollars in 2018, it rose substantially to 20,389 million in 2019, after which the growth continued more gradually, reaching 21,053 million in 2020, 22,038 million in 2021, and 22,868 million in 2022. This consistent rise indicates ongoing investment in the company’s operations or assets, reflecting a sustained commitment to capital expansion.
- MVA Spread Ratio
- The MVA spread ratio exhibited a declining trend from a high of 291.3% in 2018 to 214.26% in 2020, signaling a reduction in the premium of market value over invested capital during this period. Nevertheless, the ratio increased again from 2020, reaching 231.33% in 2021 and marginally rising further to 233.67% in 2022. Although this recovery did not return the ratio to the initial 2018 level, it reflects an improving valuation spread in the latter years and suggests enhanced investor perception relative to invested capital.
- Overall Insight
- The data portray an initial phase of decline or stagnation in market valuation metrics up to 2020, possibly associated with broader market or company-specific challenges. Starting in 2021, both the market value added and the MVA spread ratio experienced notable improvements, indicating recovery and increased market confidence. The consistently rising invested capital suggests ongoing strategic investments which may have supported this positive shift. The interplay of these metrics implies that while the company's capital base grew steadily, market value perceptions showed more volatility but ultimately improved, signaling favorable financial and operational dynamics in recent years.
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MVA Margin
Boston Scientific Corp., MVA margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 53,436) | 50,980) | 45,107) | 46,696) | 46,744) | |
| Net sales | 12,682) | 11,888) | 9,913) | 10,735) | 9,823) | |
| Add: Increase (decrease) in deferred revenue | 25) | 89) | (5) | 27) | —) | |
| Adjusted net sales | 12,707) | 11,977) | 9,908) | 10,762) | 9,823) | |
| Performance Ratio | ||||||
| MVA margin2 | 420.52% | 425.65% | 455.26% | 433.90% | 475.87% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Abbott Laboratories | 323.76% | 384.46% | — | — | — | |
| Elevance Health Inc. | 46.56% | 54.23% | — | — | — | |
| Intuitive Surgical Inc. | 1,209.45% | 1,575.51% | — | — | — | |
| Medtronic PLC | 205.92% | 391.27% | — | — | — | |
| UnitedHealth Group Inc. | 109.81% | 130.39% | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 MVA. See details »
2 2022 Calculation
MVA margin = 100 × MVA ÷ Adjusted net sales
= 100 × 53,436 ÷ 12,707 = 420.52%
3 Click competitor name to see calculations.
The financial data reveals several notable trends over the five-year period ending in 2022.
- Market Value Added (MVA)
- The MVA demonstrates a general upward trend, increasing from 46,744 million USD in 2018 to 53,436 million USD in 2022. Despite a slight decline observed in 2020, the MVA recovered strongly by 2021 and continued to grow into 2022, suggesting an overall enhancement in value generated for the shareholders.
- Adjusted Net Sales
- Adjusted net sales show some variability throughout the period. Starting at 9,823 million USD in 2018, sales increased significantly in 2019 to 10,762 million USD. Thereafter, there was a decrease in 2020 to 9,908 million USD followed by a strong recovery to 11,977 million USD in 2021 and further growth to 12,707 million USD in 2022. This pattern indicates resilience and growth in revenue generation after a transient dip, possibly reflecting external factors impacting sales during 2020.
- MVA Margin
- The MVA margin, representing the ratio of market value added relative to sales, exhibits a declining trend over the period. It starts at a high of 475.87% in 2018 and gradually decreases to 420.52% by 2022. This decline suggests that while absolute value added increased, it did so at a slower pace relative to sales growth, indicating potential changes in the efficiency or market valuation metrics applied during this timeframe.
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