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.
MVA
CoStar Group 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 »
| Item | Description | The company |
|---|---|---|
| MVA | CoStar Group Inc. market (fair) value less invested capital. | CoStar Group Inc. MVA decreased from 2020 to 2021 but then increased from 2021 to 2022 not reaching 2020 level. |
MVA Spread Ratio
CoStar Group Inc., MVA spread ratio calculation, comparison to benchmarks
| 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 | 22,258,842) | 15,210,692) | 27,418,282) | 21,431,119) | 13,523,526) | |
| Invested capital2 | 8,182,919) | 7,034,732) | 6,661,421) | 3,711,336) | 3,312,194) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 272.02% | 216.22% | 411.60% | 577.45% | 408.30% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Cintas Corp. | 573.07% | 540.75% | 433.42% | 361.84% | — | |
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 × 22,258,842 ÷ 8,182,919 = 272.02%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| MVA spread ratio | The ratio of MVA to invested capital. It measures the efficiency with which investors’ capital investment has translated into a franchise value and into an aggregate net present value premium. | CoStar Group Inc. MVA spread ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
MVA Margin
CoStar Group Inc., MVA margin calculation, comparison to benchmarks
| 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 | 22,258,842) | 15,210,692) | 27,418,282) | 21,431,119) | 13,523,526) | |
| Revenues | 2,182,399) | 1,944,135) | 1,659,019) | 1,399,719) | 1,191,832) | |
| Add: Increase (decrease) in deferred revenue | 7,058) | 19,361) | 6,743) | 19,161) | 7,489) | |
| Adjusted revenues | 2,189,457) | 1,963,496) | 1,665,762) | 1,418,880) | 1,199,321) | |
| Performance Ratio | ||||||
| MVA margin2 | 1,016.64% | 774.67% | 1,645.99% | 1,510.43% | 1,127.60% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Cintas Corp. | 481.79% | 511.81% | 397.03% | 341.21% | — | |
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 × 22,258,842 ÷ 2,189,457 = 1,016.64%
3 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| MVA margin | The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value. | CoStar Group Inc. MVA margin ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |