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.
MVA
Las Vegas Sands Corp., 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 trajectory of Market Value Added (MVA) between 2018 and 2022 exhibits a period of initial growth, a subsequent multi-year contraction, and a recovery in the final year of the observed period.
- Market Value Fluctuations
- The fair market value peaked in December 2019 at US$ 65,877 million before entering a decline that reached a low of US$ 49,248 million by December 2021. A significant rebound occurred in 2022, with the value recovering to US$ 59,474 million.
- Invested Capital Trends
- Invested capital demonstrated a steady decline from US$ 19,047 million in 2018 to US$ 15,828 million in 2021. However, there was a sharp increase in 2022, returning to US$ 18,926 million, effectively returning to 2018 levels.
- Market Value Added (MVA) Performance
- MVA followed a pattern closely aligned with the market value, increasing from US$ 42,729 million in 2018 to a high of US$ 47,866 million in 2019. A downward trend followed, with MVA dropping to US$ 33,420 million in 2021, before recovering to US$ 40,548 million by the end of 2022.
- Analysis of Value Creation
- Throughout the five-year period, MVA remained substantially positive, indicating that the market consistently valued the entity significantly above its invested capital. The volatility in MVA was driven predominantly by shifts in market capitalization rather than fluctuations in the invested capital base.
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MVA Spread Ratio
Las Vegas Sands Corp., 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 | 40,548) | 33,420) | 42,536) | 47,866) | 42,729) | |
| Invested capital2 | 18,926) | 15,828) | 15,949) | 18,011) | 19,047) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 214.24% | 211.15% | 266.70% | 265.76% | 224.33% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Airbnb Inc. | 1,119.95% | 1,602.12% | — | — | — | |
| Booking Holdings Inc. | 645.29% | 637.88% | — | — | — | |
| Chipotle Mexican Grill Inc. | 775.57% | 750.94% | — | — | — | |
| DoorDash, Inc. | 272.76% | 975.30% | — | — | — | |
| McDonald’s Corp. | 426.12% | 393.79% | — | — | — | |
| Starbucks Corp. | 553.87% | 552.49% | 492.67% | — | — | |
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 × 40,548 ÷ 18,926 = 214.24%
4 Click competitor name to see calculations.
The analysis of Market Value Added (MVA) and associated metrics from 2018 to 2022 reveals a period of volatility, characterized by a peak in 2019 followed by a contraction and subsequent recovery. The relationship between market valuation and invested capital indicates that the entity has consistently maintained a market value substantially higher than the capital invested in the business.
- Market Value Added (MVA)
- MVA reached its highest level of 47,866 million USD in 2019. A subsequent downward trend occurred, with the value dropping to its lowest point of 33,420 million USD by 2021. A recovery was observed in 2022, as the MVA increased to 40,548 million USD, signaling a rebound in market perception.
- Invested Capital
- Invested capital exhibited a steady decline from 19,047 million USD in 2018 to a low of 15,828 million USD in 2021. This trend was reversed in 2022, with invested capital rising to 18,926 million USD, nearly returning to the baseline established at the start of the period.
- MVA Spread Ratio
- The spread ratio peaked in 2020 at 266.70%, reflecting a period where the market premium relative to invested capital was at its maximum. This was followed by a sharp contraction in 2021, where the ratio fell to 211.15%. A slight recovery to 214.24% was recorded in 2022. Throughout the five-year period, the ratio remained above 200%, indicating that the market consistently assigned a high premium to the invested capital.
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MVA Margin
Las Vegas Sands Corp., 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 | 40,548) | 33,420) | 42,536) | 47,866) | 42,729) | |
| Net revenues | 4,110) | 4,234) | 3,612) | 13,739) | 13,729) | |
| Performance Ratio | ||||||
| MVA margin2 | 986.57% | 789.33% | 1,177.62% | 348.40% | 311.23% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Airbnb Inc. | 889.82% | 1,448.64% | — | — | — | |
| Booking Holdings Inc. | 515.10% | 873.40% | — | — | — | |
| Chipotle Mexican Grill Inc. | 483.21% | 544.85% | — | — | — | |
| DoorDash, Inc. | 220.43% | 634.30% | — | — | — | |
| McDonald’s Corp. | 834.91% | 808.92% | — | — | — | |
| Starbucks Corp. | 352.88% | 450.20% | 480.36% | — | — | |
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 ÷ Net revenues
= 100 × 40,548 ÷ 4,110 = 986.57%
3 Click competitor name to see calculations.
The analysis of market value added (MVA) and its associated margin reveals a period of significant volatility characterized by a sharp divergence between market valuation and operational revenue. While the absolute MVA showed resilience through 2020, a subsequent decline in 2021 was followed by a moderate recovery by the end of 2022.
- Market Value Added (MVA) Trends
- The MVA reached a peak of 47,866 million US$ in 2019 before experiencing a downward trajectory that bottomed out at 33,420 million US$ in 2021. A recovery phase is observed in 2022, with the value rising to 40,548 million US$, indicating a renewed increase in the market's valuation of the company's invested capital over its book value.
- Net Revenue Performance
- A severe contraction in net revenues occurred between 2019 and 2020, where figures dropped from 13,739 million US$ to 3,612 million US$. Despite a slight increase to 4,234 million US$ in 2021 and a marginal decrease to 4,110 million US$ in 2022, revenues remained substantially below the pre-2020 baseline.
- MVA Margin Analysis
- The MVA margin exhibited an inverse relationship with net revenues. From a baseline of 311.23% in 2018 and 348.40% in 2019, the margin surged to 1,177.62% in 2020. This spike was driven by the drastic collapse in revenue while the market value remained relatively high. Although the margin corrected to 789.33% in 2021, it rose again to 986.57% in 2022, reflecting a market valuation that far exceeds the current scale of generated revenues.
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