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.
Paying user area
Try for free
Fidelity National Information Services Inc. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- 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)
- Operating Profit Margin since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
- Analysis of Debt
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Fidelity National Information Services Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
MVA
Fidelity National Information Services Inc., MVA calculation
US$ 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 of FIS
- The market value of FIS experienced substantial fluctuations over the period. Initially, there was a significant increase from approximately $44.2 billion in 2018 to around $118.3 billion in 2019, indicating strong market performance or investor confidence. However, this was followed by a decline to about $105.8 billion in 2020 and a further decrease to $77.9 billion in 2021. The downward trend continued into 2022, with the market value falling to approximately $57.1 billion. Overall, after a peak in 2019, there was a pronounced and consistent decline in market value through 2022.
- Invested Capital
- Invested capital showed a marked increase from roughly $22.2 billion in 2018 to $75.4 billion in 2019, aligning with the rise in market value for the same period. This level was relatively stable from 2019 through 2021, with minor variations remaining close to $75 billion. However, in 2022, invested capital decreased noticeably to about $52.9 billion. The data suggests that the company significantly increased invested capital during 2019, maintained this higher level for a few years, and then reduced invested capital in 2022.
- Market Value Added (MVA)
- MVA, which represents the difference between market value and invested capital, exhibited considerable volatility. It rose substantially from approximately $21.9 billion in 2018 to $42.9 billion in 2019, indicating strong value creation during that year. This was followed by a decrease to around $30.8 billion in 2020 and a sharp drop to just $4.5 billion in 2021. In 2022, MVA remained low at about $4.2 billion. The steep decline in MVA post-2019 suggests that the growth in market value did not keep pace with invested capital, indicating declining value creation or potential market skepticism.
- Summary of Trends and Insights
- The data reveals a period of rapid expansion and strong market optimism culminating in 2019, as evidenced by significant increases in market value, invested capital, and MVA. Following 2019, the company faced declining market value and MVA over three consecutive years, with a minor reduction in invested capital in 2022 potentially reflecting strategic adjustments to align capital with more conservative market valuations. The sustained decline in MVA after 2019 points to challenges in sustaining market value relative to capital invested, which may warrant further examination into operational performance or market conditions affecting perception of the company's value.
MVA Spread Ratio
Fidelity National Information Services Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Fair Isaac Corp. | ||||||
| International Business Machines Corp. | ||||||
| Intuit Inc. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| Palantir Technologies Inc. | ||||||
| Palo Alto Networks Inc. | ||||||
| Salesforce Inc. | ||||||
| ServiceNow Inc. | ||||||
| Synopsys Inc. | ||||||
| Workday Inc. | ||||||
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 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added exhibited significant fluctuations over the five-year period. Starting at $21,935 million in 2018, it increased sharply to a peak of $42,882 million in 2019. However, this was followed by a decline to $30,791 million in 2020 and a dramatic drop to $4,536 million in 2021. The value slightly improved to $4,196 million in 2022 but remained substantially lower than the earlier years, indicating a considerable reduction in the market's valuation over invested capital in recent years.
- Invested Capital
- Invested capital showed a substantial rise from $22,222 million in 2018 to $75,448 million in 2019, maintaining a relatively high level around $75,049 million and $73,331 million in 2020 and 2021, respectively. In 2022, there was a noticeable decrease to $52,862 million. This downward trend in the last year suggests a contraction in capital investment or a divestiture of assets.
- MVA Spread Ratio
- The MVA Spread Ratio, expressed as a percentage, tracked a declining trend throughout the period. Beginning at a high of 98.71% in 2018, it decreased to 56.84% in 2019 and then to 41.03% in 2020. This trend continued sharply downward to 6.19% in 2021, with a slight rebound to 7.94% in 2022. The decreasing ratio highlights diminishing value creation relative to the invested capital over the years, with minimal improvement in the latest period.
- Overall Analysis
- The data points to initial growth phases in market valuation and invested capital around 2019, followed by a significant downturn in subsequent years. Market value growth outpaced invested capital early on, as indicated by high MVA and MVA spread ratio figures. However, the marked declines in MVA and MVA spread ratio, coupled with the reduction in invested capital by 2022, suggest challenges in value generation and possibly shifts in investment strategy or market conditions impacting performance.
MVA Margin
Fidelity National Information Services Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Revenue | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted revenue | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Fair Isaac Corp. | ||||||
| International Business Machines Corp. | ||||||
| Intuit Inc. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| Palantir Technologies Inc. | ||||||
| Palo Alto Networks Inc. | ||||||
| Salesforce Inc. | ||||||
| ServiceNow Inc. | ||||||
| Synopsys Inc. | ||||||
| Workday Inc. | ||||||
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 revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
The analysis of the financial metrics over the five-year period reveals notable trends and fluctuations in the company's market value added, adjusted revenue, and MVA margin.
- Market Value Added (MVA)
- The MVA exhibited significant volatility between 2018 and 2022. Initially, the MVA showed strong growth, increasing from 21,935 million US$ in 2018 to a peak of 42,882 million US$ in 2019. However, thereafter, a decline occurred, with the value dropping to 30,791 million US$ in 2020, followed by a steep decrease to 4,536 million US$ in 2021 and a slight further decline to 4,196 million US$ in 2022. This represents a substantial erosion of market value added in the latter years.
- Adjusted Revenue
- The adjusted revenue demonstrated a consistent upward trend across the entire period. Starting from 8,347 million US$ in 2018, revenue steadily increased each year, reaching 10,396 million US$ in 2019, 12,623 million US$ in 2020, 13,891 million US$ in 2021, and finally 14,527 million US$ in 2022. This indicates positive operational growth and expanding revenue generation capacity.
- MVA Margin
- The MVA margin, representing the ratio of market value added to adjusted revenue, followed a pattern of expansion followed by sharp contraction. In 2018 and 2019, the margin was notably strong at 262.79% and 412.48% respectively, reflecting significant value creation relative to revenue. However, the margin then declined to 243.93% in 2020 and experienced a pronounced collapse to 32.65% in 2021, continuing to fall slightly to 28.88% in 2022. This trend suggests diminishing returns in market value added per unit of revenue over the last two years.
Overall, the financial data indicates robust revenue growth alongside deteriorating market value added and profitability margins in recent years. The divergence between increasing revenue and declining market value added and margins may warrant further investigation into underlying factors impacting market perception and value generation effectiveness.