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
IQVIA Holdings Inc. pages available for free this week:
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Reportable Segments
- Enterprise Value (EV)
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Operating Profit Margin since 2013
- Current Ratio since 2013
- Total Asset Turnover since 2013
- Price to Book Value (P/BV) since 2013
- Price to Sales (P/S) since 2013
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to IQVIA Holdings Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
MVA
IQVIA Holdings Inc., MVA calculation
US$ 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 »
The financial data reveals several notable trends related to the market value and capital investment over the five-year period from 2018 to 2022.
- Market (fair) value of IQVIA
- This metric experienced consistent growth from 2018 through 2021, rising from $39,598 million to a peak of $56,976 million. However, in 2022, there was a slight decline to $54,928 million, indicating a moderate decrease in market valuation after several years of steady increase.
- Invested capital
- The invested capital showed a relatively stable and gradual upward trend across the years. Starting at $20,458 million in 2018, it slightly decreased to $20,313 million in 2019 but then steadily increased to $21,926 million by the end of 2022. This reflects a measured approach to capital deployment with incremental additions over time.
- Market value added (MVA)
- The MVA consistently increased year over year from $19,140 million in 2018 to a high of $35,735 million in 2021, reflecting growing market value above the invested capital. In 2022, there was a decline to $33,002 million, which aligns with the dip observed in the market value, though it remains significantly above the invested capital, indicating continued value creation despite the recent decrease.
Overall, the data indicates a strong period of growth in market value and value creation relative to invested capital through 2021, followed by a moderate contraction in 2022. Invested capital grew steadily but at a slower and more controlled pace compared to market valuation. The decline in market value and MVA in the final year suggests some external or internal factors may have influenced market perceptions or fundamentals during that period.
MVA Spread Ratio
IQVIA Holdings Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals 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.
The analysis of the financial data reveals several notable trends over the five-year period from 2018 to 2022.
- Market Value Added (MVA)
- The market value added has shown a consistent upward trajectory from 2018 through 2021, increasing from 19,140 million US dollars to a peak of 35,735 million US dollars. However, in 2022, there is a slight decline to 33,002 million US dollars, indicating a modest reduction after several years of growth.
- Invested Capital
- Invested capital remained relatively stable during the period, with a slight overall increase from 20,458 million US dollars in 2018 to 21,926 million US dollars in 2022. The values fluctuate minimally year over year, suggesting a controlled and steady investment strategy.
- MVA Spread Ratio
- The MVA spread ratio exhibited a marked improvement from 93.56% in 2018 to a high of 168.24% in 2021, reflecting enhanced value creation relative to invested capital. In 2022, this ratio experienced a decline to 150.51%, which, while lower than the previous year's peak, remains significantly above the 2018 level.
Overall, the data indicates strong value creation through 2021, driven by significant increases in market value added while maintaining stable invested capital. The slight reductions observed in both market value added and MVA spread ratio in 2022 suggest a potential plateau or minor setback in value generation, yet the company sustains a favorable position compared to the start of the analyzed period.
MVA Margin
IQVIA Holdings 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 | ||||||
| Revenues | ||||||
| Add: Increase (decrease) in unearned income | ||||||
| Adjusted revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals 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 revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
The financial data presents a multi-year overview of key performance indicators, allowing for an assessment of growth, profitability, and market valuation trends.
- Market Value Added (MVA)
- The Market Value Added shows a general upward trajectory from 2018 through 2021, increasing from $19,140 million in 2018 to a peak of $35,735 million in 2021. However, in 2022, there is a noticeable decline to $33,002 million, indicating a reduction in market valuation or investor perceived value relative to the prior year.
- Adjusted Revenues
- Adjusted revenues exhibit consistent growth over the five-year period, rising from $10,434 million in 2018 to $14,447 million in 2021. There is a slight dip in 2022 to $14,382 million, which suggests a plateau or marginal decline in revenue generation after steady increases in previous years.
- MVA Margin
- The MVA margin, representing the ratio of Market Value Added to adjusted revenues, increased markedly from 183.44% in 2018 to a high of 252.62% in 2020. Following this peak, the margin decreases over the next two years to 229.46% in 2022. This trend indicates that while both market value and revenues grew, the relative value created above revenue slowed somewhat after 2020.
In summary, the company demonstrated strong growth in both market valuation and revenues through 2020 and 2021, with the growth rate in market value being more pronounced than revenue increases. The decline in MVA and adjusted revenues in 2022 suggests potential challenges in maintaining growth momentum or changes in external market conditions affecting valuation. The contraction in MVA margin in the last two years may imply reduced efficiency in converting revenues into market value or shifting investor expectations.