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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- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Price to FCFE (P/FCFE)
- Selected Financial Data since 2005
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Price to Sales (P/S) since 2005
- Aggregate Accruals
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MVA
FedEx Corp., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of FedEx
- The market value experienced a general upward trend from May 31, 2019, to May 31, 2024, increasing from $77,382 million to $109,964 million. However, there was notable volatility, with a peak at $118,028 million in 2021 followed by a decline to $92,839 million in 2022 before recovering to $109,964 million in 2024. This suggests fluctuations in market perception or external factors affecting valuation during the period.
- Invested capital
- Invested capital showed a steady increase throughout the period, rising from $53,043 million in 2019 to $70,265 million in 2024. The growth was relatively consistent year-over-year, indicating continuous investment in assets or operations.
- Market Value Added (MVA)
- MVA demonstrated significant variability over the years. Starting at $24,340 million in 2019, it slightly decreased to $22,845 million in 2020 before sharply increasing to $53,799 million in 2021. Following this peak, MVA declined again to $26,377 million in 2022, then progressively increased to reach $39,699 million in 2024. This pattern reflects the market value's responsiveness relative to the invested capital and suggests fluctuating shareholder value creation across the period.
MVA Spread Ratio
FedEx Corp., MVA spread ratio calculation, comparison to benchmarks
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| MVA spread ratio3 | |||||||
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Uber Technologies Inc. | |||||||
| Union Pacific Corp. | |||||||
| United Airlines Holdings Inc. | |||||||
| United Parcel Service Inc. | |||||||
Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).
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 exhibits notable fluctuations over the analyzed period. An initial decrease is observed from 24,340 million US$ in 2019 to 22,845 million US$ in 2020, followed by a substantial surge to 53,799 million US$ in 2021. Subsequently, MVA declines to 26,377 million US$ in 2022 but then demonstrates a recovery with consistent increases in 2023 and 2024, reaching 39,699 million US$. This pattern suggests variable investor perception or market conditions impacting the company's valuation over these years.
- Invested Capital
- Invested capital shows a steady upward trend throughout the period. Starting at 53,043 million US$ in 2019, it rises incrementally each year, reaching 70,265 million US$ by 2024. This indicates ongoing capital investments or asset acquisitions to support the company’s operations, reflecting potential expansion or modernization efforts.
- MVA Spread Ratio
- The MVA spread ratio initially declines from 45.89% in 2019 to 39.69% in 2020, coinciding with the drop in MVA. It then sharply increases to 83.76% in 2021, aligning with the peak in MVA for that year. The ratio reverts to 39.69% in 2022, mirroring the pullback in market value add, before exhibiting a steady recovery to 43.85% in 2023 and a more pronounced rise to 56.5% in 2024. This ratio variation suggests shifting efficiency or profitability in generating market value over invested capital, with 2021 representing a particularly strong performance relative to invested assets.
MVA Margin
FedEx Corp., MVA margin calculation, comparison to benchmarks
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Revenue | |||||||
| Performance Ratio | |||||||
| MVA margin2 | |||||||
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Uber Technologies Inc. | |||||||
| Union Pacific Corp. | |||||||
| United Airlines Holdings Inc. | |||||||
| United Parcel Service Inc. | |||||||
Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The MVA exhibits significant fluctuation over the six-year period. Beginning at 24,340 million USD in 2019, it experienced a slight decline to 22,845 million USD in 2020. In 2021, there was a substantial surge to 53,799 million USD, representing the highest value in the period. However, the following year saw a sharp contraction to 26,377 million USD in 2022. From 2022 onwards, MVA demonstrated a recovery trend, increasing to 30,493 million USD in 2023 and further rising to 39,699 million USD in 2024. The pattern suggests volatility with a pronounced peak in 2021, followed by a partial rebound.
- Revenue
- Revenue values across the timeframe show moderate volatility but an overall growth trend until 2022. Starting at 69,693 million USD in 2019, revenue slightly decreased in 2020 to 69,217 million USD, then increased significantly to 83,959 million USD in 2021. The highest revenue was recorded in 2022 at 93,512 million USD. Afterward, revenue declined in the subsequent years to 90,155 million USD in 2023 and 87,693 million USD in 2024. Despite the recent decrease, revenue remains above pre-2021 levels, suggesting some stabilization at a higher base.
- MVA Margin
- The MVA margin percentage reflects notable variability akin to the MVA values. The margin started at 34.92% in 2019 and dipped to 33% in 2020. It peaked sharply at 64.08% in 2021, coinciding with the MVA peak that year. In 2022, the margin decreased significantly to 28.21%, indicating reduced efficiency or value creation relative to revenue during that year. The margin improved in the following years, rising to 33.82% in 2023 and 45.27% in 2024. This improvement suggests a renewed capacity to generate market value from revenue after the trough in 2022.
- Summary
- The data reflects overall cyclical trends in market value creation, with a notable peak in 2021 followed by a decline and partial recovery. Revenue growth supported the rise in market value initially but faced a downward adjustment after 2022. MVA margin trends parallel these changes, displaying increased value creation efficiency in 2021 and renewed improvement post-2022. These patterns may indicate external or internal factors affecting the firm's performance, emphasizing the need for further analysis to understand the drivers behind the volatility and recovery observed.