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.
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- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Dividend Discount Model (DDM)
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
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MVA
Texas Pacific Land Corp., MVA calculation
US$ in thousands
Based on: 10-K (reporting date: 2023-12-31), 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).
2 Invested capital. See details »
- Market (fair) value of TPL
- The market value experienced a significant increase from 5,263,670 thousand USD in 2019 to a peak of 13,768,799 thousand USD in 2022. However, this was followed by a decline to 11,676,276 thousand USD in 2023, reflecting some volatility after the substantial growth period.
- Invested capital
- Invested capital showed a generally upward trend across the years. Starting at 575,173 thousand USD in 2019, it slightly decreased in 2020 to 555,694 thousand USD but then increased progressively in the following years, reaching 1,117,290 thousand USD in 2023. This indicates a growing base of invested resources in the company over time.
- Market value added (MVA)
- Market value added followed a similar trend to the market value, increasing substantially from 4,688,497 thousand USD in 2019 to a high of 12,928,093 thousand USD in 2022. Subsequently, there was a decline to 10,558,986 thousand USD in 2023. Despite this decrease, MVA remains significantly higher compared to earlier years, indicating enhanced value creation over the period.
MVA Spread Ratio
Texas Pacific Land Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
Based on: 10-K (reporting date: 2023-12-31), 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).
1 MVA. See details »
2 Invested capital. See details »
3 2023 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 substantial fluctuations over the analyzed period. Starting at approximately 4.69 billion US dollars at the end of 2019, it increased significantly to around 8.07 billion US dollars in 2020. This was followed by a decline to roughly 7.12 billion US dollars in 2021. A notable rebound occurred in 2022, with MVA reaching a peak of approximately 12.93 billion US dollars, before declining again to around 10.56 billion US dollars in 2023. Overall, the MVA shows a pattern of volatility but with an upward trend when comparing the beginning and the end of the period.
- Invested Capital
- The invested capital demonstrated a steady upward trajectory throughout the five-year span. Starting at about 575 million US dollars at the close of 2019, it experienced a slight decrease in 2020 to approximately 556 million US dollars. Subsequently, the invested capital rose consistently each year, reaching about 718 million US dollars in 2021, then increasing to roughly 841 million US dollars in 2022, and further to approximately 1.12 billion US dollars in 2023. This indicates ongoing capital investment growth with a minor dip only in 2020.
- MVA Spread Ratio
- The MVA spread ratio, representing the return spread between market value added and invested capital expressed as a percentage, displayed notable variability. It began at a high level of approximately 815% at the end of 2019, surged to a peak of around 1452% in 2020, before declining to nearly 992% in 2021. The ratio increased again in 2022 to approximately 1538%, marking the highest point in the period analyzed. However, it fell sharply in 2023 to around 945%. Despite these fluctuations, the spread ratio remained significantly above 800% in all years, indicating that the company consistently generated value well above its invested capital throughout the period.
MVA Margin
Texas Pacific Land Corp., MVA margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Revenues | ||||||
| Add: Increase (decrease) in unearned revenue | ||||||
| Adjusted revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
Based on: 10-K (reporting date: 2023-12-31), 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).
1 MVA. See details »
2 2023 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added exhibited notable fluctuations over the five-year period. Starting at approximately 4.69 billion USD in 2019, it increased substantially in 2020 to about 8.07 billion USD, indicating a rapid rise in market valuation relative to invested capital. In 2021, there was a decline to roughly 7.12 billion USD, followed by a significant rebound in 2022, reaching a peak near 12.93 billion USD. However, in 2023, MVA decreased to approximately 10.56 billion USD, suggesting some volatility but generally maintaining a higher level than at the start of the period.
- Adjusted Revenues
- Adjusted revenues showed variability throughout the years, beginning at around 494.5 million USD in 2019. Revenues dropped notably in 2020 to about 311.3 million USD but recovered in 2021 to 449.0 million USD. The upward trend continued into 2022, reaching a high of approximately 669.4 million USD. A slight decline occurred in 2023, with revenues decreasing to about 636.7 million USD, yet the overall trend over five years is an increase with some year-to-year volatility.
- MVA Margin
- The MVA margin displayed significant variability. It initiated at 948.11% in 2019 and surged sharply in 2020 to 2592.3%. Thereafter, it decreased to 1586.28% in 2021, increased again to 1931.41% in 2022, and slightly declined to 1658.3% in 2023. The margin remained at very high levels, indicating that the market value added relative to revenues was substantial across all years, albeit with fluctuating intensity.
- Overall Analysis
- Over the five-year period, market value added and adjusted revenues both show a pattern of volatility but with an overall positive trend when comparing the start and end points. The MVA margin, consistently high, indicates strong value creation beyond revenues, though the fluctuations suggest sensitivity to market or operational factors affecting profitability or investor perception. The spike in 2020 across these metrics could reflect external financial or market conditions influencing performance.