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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- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Operating Profit Margin since 2005
- Current Ratio since 2005
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
- Analysis of Debt
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MVA
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 Hubbell
- The market (fair) value shows a consistent upward trend from 8,247,142 thousand US dollars in 2018 to 14,253,474 thousand US dollars in 2022. This represents a substantial increase over the five-year period, with the largest absolute growth occurring between 2021 and 2022. The growth appears steady each year, highlighting positive market perceptions and increasing company valuation.
- Invested capital
- The invested capital remains relatively stable across the years, starting at 4,206,535 thousand US dollars in 2018 and increasing slightly to 4,504,100 thousand US dollars by 2022. There is minimal fluctuation, indicating consistent capital investment levels without significant expansion or reduction.
- Market value added (MVA)
- The market value added demonstrates a strong upward trajectory, rising from 4,040,607 thousand US dollars in 2018 to 9,749,374 thousand US dollars in 2022. This suggests a growing difference between the market value and invested capital, reflecting increased value creation for investors. The acceleration in MVA gain is particularly pronounced from 2021 to 2022.
MVA Spread Ratio
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
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Selected Financial Data (US$ in thousands) | ||||||
Market value added (MVA)1 | ||||||
Invested capital2 | ||||||
Performance Ratio | ||||||
MVA spread ratio3 | ||||||
Benchmarks | ||||||
MVA Spread Ratio, Competitors4 | ||||||
Boeing Co. | ||||||
Caterpillar Inc. | ||||||
Eaton Corp. plc | ||||||
GE Aerospace | ||||||
Honeywell International Inc. | ||||||
Lockheed Martin Corp. | ||||||
RTX Corp. |
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 a consistent growth trend from 2018 to 2022. Starting at approximately 4.04 billion US dollars in 2018, the MVA increased steadily each year, reaching nearly 9.75 billion US dollars by 2022. This represents more than a twofold increase over the five-year span, indicating an increasing market valuation relative to invested capital.
- Invested Capital
- The invested capital showed a relatively stable pattern over the same period. Beginning at around 4.21 billion US dollars in 2018, it remained close to this level with minor fluctuations, peaking slightly above 4.5 billion US dollars in 2022. This stability suggests controlled investment levels without significant expansion or contraction in capital investment.
- MVA Spread Ratio
- The MVA spread ratio, which indicates the return spread between the market value added and invested capital, demonstrated a notable upward trajectory. It increased from 96.06% in 2018 to 216.46% in 2022. The consistent year-over-year increment in this ratio reflects an improving return on invested capital, suggesting that the company has been increasingly effective in generating market value relative to the capital invested.
MVA Margin
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||
Market value added (MVA)1 | ||||||
Net sales | ||||||
Add: Increase (decrease) in contract liabilities, deferred revenue | ||||||
Adjusted net sales | ||||||
Performance Ratio | ||||||
MVA margin2 | ||||||
Benchmarks | ||||||
MVA Margin, Competitors3 | ||||||
Boeing Co. | ||||||
Caterpillar Inc. | ||||||
Eaton Corp. plc | ||||||
GE Aerospace | ||||||
Honeywell International Inc. | ||||||
Lockheed Martin Corp. | ||||||
RTX Corp. |
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 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added showed a consistent upward trend over the five-year period, increasing steadily from approximately 4.04 billion US dollars in 2018 to nearly 9.75 billion US dollars in 2022. This growth indicates a significant enhancement in the company’s market valuation and perhaps reflects positive investor sentiment or improved company performance over time.
- Adjusted Net Sales
- Adjusted net sales experienced some fluctuations during the period under review. After a slight increase from around 4.50 billion US dollars in 2018 to approximately 4.59 billion in 2019, sales declined in 2020 and remained relatively stable in 2021, with values close to 4.19 billion US dollars in both years. A notable recovery occurred in 2022, reaching roughly 4.98 billion US dollars. The dip in sales during 2020 and 2021 might correspond to external challenges or market conditions, while the rebound in 2022 suggests a return to growth momentum.
- MVA Margin
- The MVA margin, representing the ratio of market value added relative to net sales, displayed a marked increase each year, moving from about 89.81% in 2018 to nearly 195.89% in 2022. This upward trajectory implies that the market value added by the company has been growing at a faster rate than its adjusted net sales, potentially indicating improved profitability, operational efficiency, or market confidence in the company’s future prospects.