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
Norfolk Southern Corp., MVA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2017-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Norfolk Southern Corp. market (fair) value less invested capital. | Norfolk Southern Corp. MVA increased from 2019 to 2020 and from 2020 to 2021. |
MVA Spread Ratio
Norfolk Southern Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 46,818) | 43,532) | 34,949) | 24,524) | 18,354) | |
| Invested capital2 | 35,469) | 35,427) | 35,233) | 34,104) | 33,382) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 132.00% | 122.88% | 99.19% | 71.91% | 54.98% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| FedEx Corp. | 83.76% | 39.69% | 45.89% | 73.80% | — | |
| Uber Technologies Inc. | 331.50% | 420.06% | 206.61% | — | — | |
| Union Pacific Corp. | 224.50% | 191.78% | 172.47% | — | — | |
| United Parcel Service Inc. | 373.64% | 415.72% | 232.28% | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 MVA. See details »
2 Invested capital. See details »
3 2021 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 46,818 ÷ 35,469 = 132.00%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| MVA spread ratio | The ratio of MVA to invested capital. It measures the efficiency with which investors’ capital investment has translated into a franchise value and into an aggregate net present value premium. | Norfolk Southern Corp. MVA spread ratio improved from 2019 to 2020 and from 2020 to 2021. |
MVA Margin
Norfolk Southern Corp., MVA margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 46,818) | 43,532) | 34,949) | 24,524) | 18,354) | |
| Railway operating revenues | 11,142) | 9,789) | 11,296) | 11,458) | 10,551) | |
| Performance Ratio | ||||||
| MVA margin2 | 420.19% | 444.70% | 309.40% | 214.03% | 173.95% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| FedEx Corp. | 64.08% | 33.00% | 34.92% | 60.35% | — | |
| Uber Technologies Inc. | 305.35% | 793.36% | 298.93% | — | — | |
| Union Pacific Corp. | 599.66% | 572.79% | 454.49% | — | — | |
| United Parcel Service Inc. | 170.51% | 162.99% | 113.97% | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
1 MVA. See details »
2 2021 Calculation
MVA margin = 100 × MVA ÷ Railway operating revenues
= 100 × 46,818 ÷ 11,142 = 420.19%
3 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| MVA margin | The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value. | Norfolk Southern Corp. MVA margin ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |