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
Paycom Software Inc. pages available for free this week:
- Income Statement
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Price to FCFE (P/FCFE)
- Net Profit Margin since 2014
- Operating Profit Margin since 2014
- Return on Assets (ROA) since 2014
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Paycom Software Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
MVA
Paycom Software Inc., MVA calculation
US$ in thousands
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 Paycom
- The market value exhibited a significant upward trend from 2018 to 2020, increasing from approximately 10.28 billion USD to 23.24 billion USD. This represents more than a twofold growth in the two-year period. However, from 2020 onward, the market value declined each year, dropping to around 19.07 billion USD in 2021 and further to 17.86 billion USD in 2022. Despite this decrease, the market value remains substantially higher than at the start of the period.
- Invested capital
- The invested capital showed consistent growth across the entire five-year span. Starting at about 523 million USD in 2018, it increased steadily each year, reaching nearly 1.48 billion USD by the end of 2022. The largest annual increases occurred in the later years, particularly from 2020 to 2021 and from 2021 to 2022, indicating ongoing capital investments or retained earnings fueling growth.
- Market value added (MVA)
- Market value added followed a pattern similar to the market value, rising sharply from about 9.76 billion USD in 2018 to 22.38 billion USD in 2020. It then decreased in the subsequent years, falling to approximately 17.88 billion USD in 2021 and then to 16.38 billion USD in 2022. Despite this decrease, MVA remains significantly positive, suggesting the company continues to create substantial value over and above the invested capital.
MVA Spread Ratio
Paycom Software Inc., MVA spread ratio calculation
| 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 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
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 × ÷ =
- Market Value Added (MVA)
- The market value added has demonstrated significant growth from 2018 through 2020, increasing from approximately $9.76 billion to $22.38 billion. However, after reaching this peak in 2020, a declining trend is observed, with MVA decreasing to $17.88 billion in 2021 and further to $16.38 billion in 2022. This indicates a reduction in the market’s valuation premium relative to invested capital during the last two years.
- Invested Capital
- Invested capital has steadily increased each year across the period analyzed. Starting at $523 million in 2018, it rose consistently to approximately $1.48 billion by the end of 2022. This continuous increase reflects ongoing investments and growth in the capital base of the company over the five-year span.
- MVA Spread Ratio
- The MVA spread ratio, which measures the relative premium of market value over invested capital, showed a rising trend from 2018 to 2020, increasing from 1866.8% to a peak of 2602.75%. This suggests improved market valuation relative to capital invested during these years. Nonetheless, post-2020, a notable decrease occurred, with the ratio falling to 1503.59% in 2021 and further to 1108.18% in 2022. This decline parallels the reduction in MVA and indicates diminishing returns or value creation relative to the capital invested during the latter part of the analyzed period.
- Summary
- The overall pattern indicates that while invested capital expanded steadily without interruption, the market value added increased substantially up to 2020 but experienced volatility and decline thereafter. Correspondingly, the MVA spread ratio peaked in 2020 before declining considerably over the subsequent two years, pointing to a less favorable valuation environment or performance relative to the company's capital investments in that timeframe.
MVA Margin
Paycom Software Inc., MVA margin calculation
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 × ÷ =
- Market Value Added (MVA)
- The market value added shows a general upward trend from 2018 to 2020, increasing from approximately 9.76 billion to 22.38 billion US dollars. This indicates significant value creation during these years. However, after 2020, there is a notable decline, with MVA decreasing to about 17.88 billion in 2021 and further to 16.38 billion in 2022. This suggests a reversal in market valuation growth in the latter years.
- Adjusted Revenues
- Adjusted revenues consistently increased throughout the period, starting at around 579 million US dollars in 2018 and rising steadily each year to reach approximately 1.39 billion by the end of 2022. This reflects strong and continuous growth in the company's core business activities over the five-year span.
- MVA Margin
- The MVA margin exhibited a peak in 2020 at approximately 2627.21%, representing high efficiency in converting revenue growth into market value. However, there is a significant decline after 2020, falling to 1671.14% in 2021 and further down to 1177.7% in 2022. Despite remaining positive and substantial, this declining margin indicates a reduced incremental market value generated per unit of revenue in the recent years.