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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MVA
Etsy Inc., MVA calculation
US$ in thousands
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 »
- Market (fair) value of Etsy
- The market value exhibits substantial growth from 2017 to 2020, rising from approximately 3.14 billion USD to over 28.5 billion USD. This represents a nearly ninefold increase during this period, indicating significant expansion in perceived company value. However, in 2021, the market value declined to approximately 22.5 billion USD, suggesting a correction or a reduction after the peak in 2020.
- Invested capital
- The invested capital shows a steady upward trend throughout the entire period. Starting at about 499 million USD in 2017, it nearly doubled to 536 million USD in 2018, then saw a more pronounced increase to 888 million USD in 2019. The growth accelerated thereafter, reaching approximately 1.49 billion USD in 2020 and further surging to about 2.84 billion USD in 2021. This indicates continuous and increasing capital deployment into the business.
- Market value added (MVA)
- Market value added, representing the difference between market value and invested capital, closely follows the trend of the market value. It increased sharply from roughly 2.64 billion USD in 2017 to a peak of about 27.0 billion USD in 2020. This reflects an increasing premium investors place above the invested capital during this period. In 2021, MVA decreased to around 19.6 billion USD, paralleling the decline in market value, which implies that the market's perception of value relative to capital invested also contracted.
MVA Spread Ratio
Etsy Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Amazon.com Inc. | ||||||
| Home Depot Inc. | ||||||
| Lowe’s Cos. Inc. | ||||||
| TJX Cos. Inc. | ||||||
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 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added shows a fluctuating but overall increasing trend from 2017 to 2021. It rose sharply from 2,640,601 thousand USD in 2017 to a peak of 27,032,030 thousand USD in 2020, before declining noticeably to 19,621,918 thousand USD in 2021. This indicates significant market value growth during the period, with a notable peak followed by a reduction in the last reported year.
- Invested Capital
- Invested capital consistently increased every year, from 498,789 thousand USD in 2017 to 2,842,921 thousand USD in 2021. This upward trend reflects a growing commitment of resources or assets invested in the business over the five-year period.
- MVA Spread Ratio
- The MVA spread ratio, which measures the relationship between market value added and invested capital, exhibited high volatility. Starting at 529.4% in 2017, it surged to a peak of 1,816% in 2020 before falling dramatically to 690.2% in 2021. Despite the volatility, the ratio remained substantially positive throughout, indicating a market value considerably exceeding the invested capital.
- Overall Analysis
- Between 2017 and 2021, the company experienced significant growth in invested capital, suggesting expansion or increased asset base. Market value added rose markedly until 2020, reflecting enhanced market perceptions or valuation, though it declined in 2021. The fluctuations in the MVA spread ratio align with changes in MVA, showing peak market value efficiency in 2020, followed by a reduction, though it remained at a high positive level relative to invested capital. These trends illustrate dynamic market valuation relative to capital investment during the period evaluated.
MVA Margin
Etsy Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Revenue | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted revenue | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Amazon.com Inc. | ||||||
| Home Depot Inc. | ||||||
| Lowe’s Cos. Inc. | ||||||
| TJX Cos. Inc. | ||||||
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 revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added shows significant fluctuations over the analyzed period. Starting from approximately 2.64 billion US dollars in 2017, it increased sharply to around 8.10 billion in 2018. However, the following year saw a decrease to about 6.40 billion. A substantial peak occurred in 2020, with MVA reaching approximately 27.03 billion US dollars, followed by a decline to roughly 19.62 billion in 2021. This pattern indicates a period of strong growth culminating in 2020, with some correction or decline afterward.
- Adjusted Revenue
- Adjusted revenue presents a steady and strong upward trend across the years. Beginning at approximately 442 million US dollars in 2017, revenue consistently increased each year, reaching nearly 2.33 billion US dollars by 2021. The revenue growth rate accelerated notably between 2019 and 2020, more than doubling, then continued to rise but at a slower pace through 2021. This suggests expanding operational performance and market penetration during the period.
- MVA Margin
- The MVA margin exhibits considerable volatility. It started at approximately 597.63% in 2017, peaked dramatically to 1338.51% in 2018, then dropped to 782.03% in 2019. The margin reached its highest point in 2020 at 1563.2%, indicating a very high return relative to revenue for that year. However, it declined sharply again in 2021 to 842.07%. These fluctuations suggest that while the company's market value growth was extraordinarily strong in certain years, it was not consistently proportional to revenue changes, possibly reflecting market expectations and external factors influencing valuation apart from operational revenue.