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
Zoetis Inc. pages available for free this week:
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Zoetis Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
MVA
Zoetis Inc., MVA calculation
US$ in millions
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 Fair value of debt. See details »
2 Invested capital. See details »
The financial data reveals several notable trends in the market value, invested capital, and market value added for the period between 2019 and 2023.
- Market (fair) value
- The market value exhibited consistent growth from 2019 to 2021, increasing from $75,522 million in 2019 to a peak of $100,973 million in 2021. However, this was followed by a significant decline in 2022 to $85,993 million. In 2023, the market value showed signs of recovery, rising modestly to $90,575 million, though it remained below the 2021 peak.
- Invested capital
- Invested capital increased steadily from $9,838 million in 2019 to $12,542 million in 2022. In 2023, however, invested capital decreased to $11,550 million, indicating a reduction in the capital base after a period of growth. This decline could suggest divestments, asset sales, or a strategic change in investment allocation.
- Market value added (MVA)
- MVA followed a similar trend as the market value. It increased significantly from $65,684 million in 2019 to a high of $89,361 million in 2021. Following this, MVA decreased to $73,451 million in 2022 before partially rebounding to $79,025 million in 2023. The pattern in MVA reflects changes in market value, adjusted for invested capital, highlighting changes in shareholder value creation over time.
Overall, the period between 2019 and 2021 was characterized by growth both in market valuation and invested capital, underlining positive market sentiment and likely expansion or investment initiatives. The decline observed in 2022 across all three metrics signals a period of contraction or market correction, with some recovery evident in 2023 albeit not reaching earlier highs. The dip in invested capital in 2023 may indicate a strategic adjustment following the volatility of the previous year.
MVA Spread Ratio
Zoetis Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
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 demonstrates a general upward trend from 2019 to 2023, rising from $65,684 million to $79,025 million. There was a significant increase from 2019 through 2021, peaking at $89,361 million in 2021, followed by a notable decline in 2022 to $73,451 million. The value rebounded in 2023, though it did not reach the 2021 peak.
- Invested Capital
- Invested Capital shows a moderate increase over the five-year period, starting at $9,838 million in 2019 and peaking at $12,542 million in 2022. However, there is a slight decrease in 2023 to $11,550 million. The overall trend suggests steady investment growth with a minor contraction at the end of the period.
- MVA Spread Ratio
- The MVA Spread Ratio reflects the relative value generated by the invested capital. It remained fairly high across all years, above 580%, with the highest level in 2021 at approximately 770%. Similar to the MVA, the ratio dropped in 2022 to 585.64% but increased again in 2023 to 684.2%. This indicates fluctuating but overall strong value creation relative to capital invested, with peak efficiency in 2021.
MVA Margin
Zoetis Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Revenue | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
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 ÷ Revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
The financial data reveals several notable trends over the five-year period ending in 2023. Overall, revenue has demonstrated a steady upward trajectory, increasing annually from 6,260 million US dollars in 2019 to 8,544 million US dollars in 2023. This growth suggests a consistent expansion in the company's core operations and sales performance.
Market value added (MVA), expressed in millions of US dollars, also exhibited an upward trend between 2019 and 2021, rising from 65,684 million to 89,361 million. However, this trend reversed somewhat in 2022, with a decline to 73,451 million, followed by a partial recovery to 79,025 million in 2023. The initial increase in MVA indicates growing shareholder value during the first three years, while the dip in 2022 may reflect market or operational challenges affecting the company's valuation. The recovery in 2023 suggests some improvement or stabilization after the prior year's decline.
The MVA margin, which compares market value added relative to revenue and is expressed as a percentage, follows a similar pattern. It increased from 1,049.26% in 2019 to a peak of 1,149.19% in 2021, before falling sharply to 909.05% in 2022. In 2023, it partially rebounded to 924.92%. The decreasing margin in 2022 and 2023 implies that while revenue continued to grow, the market value added did not keep pace proportionally, resulting in reduced value creation efficiency during these years.
In summary, the company experienced solid revenue growth throughout the period. Market value added and MVA margin peaked in 2021, followed by a decline in 2022, which indicates challenges in translating revenue growth into equivalent increases in market value. The partial recovery in 2023 shows improvement but the company's value creation capacity had not yet returned to the prior peak levels by the end of the period analyzed.