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
Waste Management Inc. pages available for free this week:
- Common-Size Income Statement
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Capital Asset Pricing Model (CAPM)
- Net Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
- Analysis of Debt
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Waste Management Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
MVA
Waste Management Inc., MVA calculation
US$ 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 »
The financial data reveals several notable trends over the five-year period analyzed.
- Market (fair) value of Waste Management
- The market value shows an overall increasing trend, rising from US$46,749 million at the end of 2017 to US$73,383 million at the end of 2021. There is a slight dip observed in 2020 when the market value decreased to US$62,112 million from US$67,359 million in 2019, likely reflecting external market challenges during that period. However, the value recovered strongly in 2021, reaching its highest level in the dataset.
- Invested capital
- Invested capital exhibited a steady rise from US$17,686 million in 2017 to US$23,729 million in 2020, before experiencing a minor decline to US$22,932 million in 2021. This indicates ongoing investment in the company’s assets over the years, with a slight reduction in capital deployment or asset base in the last year analyzed.
- Market value added (MVA)
- The market value added, representing the excess value over invested capital, shows a significant upward trend. It increased from US$29,063 million in 2017 to US$50,451 million in 2021. Despite a dip in 2020 to US$38,383 million, the MVA rose sharply in the subsequent year, surpassing previous highs. This suggests that the company was able to create substantial shareholder value beyond invested capital, demonstrating strong market confidence and potentially enhanced operational performance.
Overall, the data suggests a positive trajectory in market valuation and value creation, with temporary effects likely associated with economic or industry-specific conditions in 2020. The sustained increase in market value added relative to invested capital indicates efficient value generation over the period assessed.
MVA Spread Ratio
Waste Management Inc., MVA spread ratio calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
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 × ÷ =
The financial data indicates several notable trends over the five-year period from 2017 to 2021. Market value added (MVA), invested capital, and the MVA spread ratio exhibit varying patterns that highlight the company's financial performance and capital efficiency.
- Market Value Added (MVA)
- MVA shows an overall upward trend during the period, increasing from 29,063 million US dollars in 2017 to 50,451 million US dollars in 2021. This represents a significant growth, despite a dip in 2020 to 38,383 million US dollars from the prior year's peak of 44,719 million US dollars. The decline in 2020 may reflect external or operational challenges but was followed by a strong recovery in 2021, reaching the highest value recorded in the timeframe.
- Invested Capital
- Invested capital rises steadily from 17,686 million US dollars in 2017 to 23,729 million US dollars by 2020, showing consistent investment or capital deployment. However, there is a slight decrease in 2021 to 22,932 million US dollars, suggesting some capital divestment or optimization after a period of expansion.
- MVA Spread Ratio
- This key efficiency metric fluctuates, beginning at 164.33% in 2017 and climbing to 197.52% in 2019, which indicates improved value generation over invested capital. The ratio declines to 161.75% in 2020, coinciding with the dip in MVA, but then sharply rises to 220% in 2021, the highest in the period, implying an enhanced return on invested capital or improved market valuation relative to invested assets.
Overall, the data suggests that while the company experienced some volatility around 2020—likely due to external factors impacting the market or operations—it was able to resume growth in market value and increase capital efficiency by 2021. The substantial improvement in the MVA spread ratio in the final year highlights a positive shift in value creation relative to the invested capital base.
MVA Margin
Waste Management Inc., MVA margin calculation
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 ÷ Adjusted operating revenues
= 100 × ÷ =
The financial data reveals several noteworthy trends over the analyzed periods.
- Market Value Added (MVA)
- The MVA shows a generally upward trajectory from 29,063 million US dollars at the end of 2017 to 50,451 million US dollars by the end of 2021. Despite a decline in 2020 to 38,383 million US dollars from 44,719 million US dollars in 2019, the subsequent increase in 2021 surpasses all previous levels, indicating a strong recovery and growth in market value.
- Adjusted Operating Revenues
- Adjusted operating revenues exhibit a gradual increase from 14,495 million US dollars in 2017 to 17,963 million US dollars in 2021. A slight decrease occurred in 2020, dropping to 15,223 million US dollars from 15,467 million US dollars in 2019, but the following year showed significant growth, suggesting operational improvements or increased sales.
- MVA Margin
- The MVA margin, expressed as a percentage, follows a similar pattern to MVA, increasing from 200.51% in 2017 to a peak of 289.12% in 2019. A decline to 252.14% in 2020 is apparent, mirroring decreases in MVA and revenues during the same period, before rebounding to 280.86% in 2021. This indicates fluctuating efficiency in generating market value relative to operating revenues, with a temporary dip in 2020 likely influenced by external or operational challenges.
- Overall Insights
- Across the five-year span, the data suggest strong long-term growth in both market value and operating revenues, despite a setback in 2020. The recovery in 2021 is notable and could reflect favorable market conditions, strategic initiatives, or improved operational performance. The MVA margin trend suggests that the company's ability to create market value from its operating revenues, although variable, remains robust.