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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- Statement of Comprehensive Income
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Return on Assets (ROA) since 2005
- Analysis of Debt
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MVA
Edwards Lifesciences Corp., MVA calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2017-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Edwards Lifesciences
- There has been a consistent upward trend in the market value over the five-year period from December 31, 2017, to December 31, 2021. The market value increased from approximately $28.1 billion in 2017 to about $65.6 billion in 2021. This represents more than a doubling of market valuation, indicating strong market confidence and growth in perceived company value.
- Invested capital
- The invested capital shows a moderate increase from about $2.86 billion in 2017 to a peak of approximately $3.94 billion in 2020, followed by a slight decrease to around $3.79 billion in 2021. The growth in invested capital up to 2020 suggests ongoing investment in company assets or operations, with the small decline in 2021 potentially reflecting optimization or divestment activities.
- Market value added (MVA)
- The market value added exhibits a strong growth pattern similar to the market value itself, rising from about $25.3 billion in 2017 to about $61.8 billion in 2021. This indicates that the market valuation increasingly exceeds the invested capital, implying enhanced value creation over the period. The expanding MVA suggests that the company has been successful in generating returns that exceed its invested capital, contributing positively to shareholder wealth.
MVA Spread Ratio
Edwards Lifesciences Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
Based on: 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), 10-K (reporting date: 2017-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2021 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added demonstrated a consistent upward trend over the five-year period. Starting at approximately $25.29 billion in 2017, it increased each year, reaching about $61.77 billion by the end of 2021. This reflects a strong growth trajectory in the company's market valuation relative to invested capital.
- Invested Capital
- Invested capital showed moderate growth from 2017 through 2020, rising from approximately $2.86 billion to roughly $3.94 billion. However, in 2021, there was a slight decline to around $3.79 billion, indicating a potential reduction in capital investment or asset base in that year.
- MVA Spread Ratio
- The MVA spread ratio exhibited a significant improvement throughout the observed period. Beginning at 885.61% in 2017, the ratio steadily increased each year, ultimately reaching 1629.15% by 2021. This suggests an enhanced efficiency in generating market value over invested capital, with the company achieving a higher market value premium relative to the invested assets.
- Summary
- Overall, the data reveals sustained growth in market value added, outperforming the relatively stable invested capital base. The increasing MVA spread ratio underscores the company's enhanced ability to create value over its capital investments. The slight dip in invested capital in 2021 does not appear to have hindered the company’s market value growth, suggesting improved capital efficiency or favorable market conditions during that period.
MVA Margin
Edwards Lifesciences Corp., MVA margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Net sales | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
Based on: 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), 10-K (reporting date: 2017-12-31).
1 MVA. See details »
2 2021 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added shows a continuous upward trend over the five-year period. Starting at approximately 25.3 billion USD at the end of 2017, it increased steadily each year, reaching about 61.8 billion USD by the end of 2021. This represents a significant growth, more than doubling the initial value, indicating a strong enhancement in shareholder value during this period.
- Net Sales
- Net sales exhibit a consistent growth trajectory from 2017 to 2021. The sales increased from approximately 3.44 billion USD in 2017 to over 5.23 billion USD in 2021. While the growth between 2017 and 2019 was gradual, a slight stagnation occurred in 2020 with sales remaining close to the previous year. However, a robust recovery and acceleration are visible in 2021, with the highest sales recorded across the five-year span.
- MVA Margin
- The MVA margin, indicating the market value added relative to net sales, has shown a strong upward trend as well, starting at 736.2% in 2017 and increasing steadily to reach 1180.52% in 2021. This margin suggests that the market value generated per unit of sales has improved significantly, reflecting growing market confidence and possibly efficient management or enhanced profitability over this period.