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
MVA Spread Ratio
MVA Margin

CoStar Group Inc., MVA calculation

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Fair value of long-term debt, net¹	989,210)	987,944)	986,715)	—)	—)
Operating lease liability	112,056)	125,638)	137,977)	149,823)	169,078)
Market value of common equity	29,340,495)	21,131,842)	32,955,011)	25,002,702)	16,676,712)
Preferred stock, $0.01 par value; zero outstanding	—)	—)	—)	—)	—)
Less: Available-for-sale investments	—)	—)	—)	10,070)	10,070)
Market (fair) value of CoStar Group	30,441,761)	22,245,424)	34,079,703)	25,142,455)	16,835,720)
Less: Invested capital²	8,182,919)	7,034,732)	6,661,421)	3,711,336)	3,312,194)
MVA	22,258,842)	15,210,692)	27,418,282)	21,431,119)	13,523,526)

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 »

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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.

CoStar Group Inc., MVA spread ratio calculation

	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%

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%

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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.

CoStar Group Inc., MVA margin calculation

	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%

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%

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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.

CoStar Group Inc. (NASDAQ:CSGP)

Market Value Added (MVA)

MVA

MVA Spread Ratio

MVA Margin