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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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Reportable Segments
- Common Stock Valuation Ratios
- Dividend Discount Model (DDM)
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Debt
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MVA
UnitedHealth Group Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of UnitedHealth Group
- The market value demonstrated a consistent upward trend from 2020 through 2023, increasing from $378,396 million in 2020 to a peak of $535,381 million in 2023. However, in 2024, there was a notable decline to $515,285 million, indicating a reversal of the prior growth momentum during that year.
- Invested capital
- Invested capital showed steady growth throughout the entire period under review. Starting at $130,513 million in 2020, it rose year-over-year to reach $198,557 million by 2024. This represents a continuous expansion in the capital committed to the business, reflecting ongoing investments or asset growth.
- Market value added (MVA)
- The market value added, which measures the difference between market value and invested capital, increased significantly from $247,883 million in 2020 to a high of $371,619 million in 2021. After 2021, MVA declined, albeit remaining at elevated levels, falling progressively to $316,728 million in 2024. This decline suggests that while the company’s market value increased consistently until 2023, the growth rate relative to invested capital slowed down and eventually contracted in 2024.
- Overall analysis
- The data reveals a general expansion in both market value and capital investment over the five-year span, indicative of company growth and increasing business scale. However, the peak and subsequent reduction in market value in 2024, alongside the decline in MVA from 2021 onward, may suggest market challenges, reduced investor confidence, or other external factors impacting valuation. The sustained rise in invested capital indicates ongoing commitment to business operations despite market fluctuations.
MVA Spread Ratio
UnitedHealth Group Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added showed a significant increase from 247,883 million USD in 2020 to a peak of 371,619 million USD in 2021. However, it experienced a decline thereafter, decreasing to 354,290 million USD in 2022, remaining relatively stable at 352,540 million USD in 2023, and then further declining to 316,728 million USD in 2024. This suggests an overall trend of volatility with a peak in 2021 followed by a downward correction in subsequent years.
- Invested Capital
- Invested capital displayed a consistent upward trajectory over the entire period. It increased steadily from 130,513 million USD in 2020 to 139,922 million USD in 2021, followed by further growth each year, reaching 165,347 million USD in 2022, 182,841 million USD in 2023, and culminating at 198,557 million USD in 2024. This indicates continuous reinvestment or expansion of capital base over the years.
- MVA Spread Ratio
- The MVA spread ratio, which reflects the efficiency in generating market value over invested capital, started at a high level of 189.93% in 2020 and increased substantially to 265.59% in 2021, coinciding with the peak in market value added. Thereafter, it declined consistently to 214.27% in 2022, 192.81% in 2023, and further to 159.51% in 2024. This pattern aligns with the trend observed in market value added, indicating a diminishing return on invested capital in the later years despite the growing capital base.
- Overall Analysis
- The data reveals that while there was robust growth in market value added and efficiency measured by the MVA spread ratio up to 2021, the following years saw a decline in market value added and efficiency despite continuous increases in invested capital. This suggests challenges in translating additional invested capital into proportional market value gains in recent years. The declining MVA spread ratio highlights a reduction in value creation efficiency, which may warrant further investigation into operational or market factors influencing this trend.
MVA Margin
UnitedHealth Group Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Revenues, customers | ||||||
| Add: Increase (decrease) in unearned revenues | ||||||
| Adjusted revenues, customers | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenues, customers
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The MVA experienced a significant increase from 2020 to 2021, rising from 247,883 million USD to 371,619 million USD. However, after this peak in 2021, the MVA demonstrated a gradual decline over the next three years, reaching 316,728 million USD by the end of 2024. This reflects a reduction in the market value added despite the initial strong growth.
- Adjusted Revenues, Customers
- The adjusted revenues showed a consistent and robust upward trend throughout the five-year period. Starting at 255,859 million USD in 2020, revenues steadily increased each year, culminating in 395,038 million USD in 2024. This indicates sustained growth in revenues associated with customers over time.
- MVA Margin
- The MVA margin reached its highest point in 2021 at 130.39%, suggesting peak efficiency or value creation relative to revenues in that year. Following 2021, the margin demonstrated a downward trend, falling to 80.18% by 2024. This decline suggests decreasing profitability or value generation relative to adjusted revenues despite increasing revenues overall.