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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Amphenol Corp. pages available for free this week:
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Current Ratio since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
- Aggregate Accruals
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MVA
Amphenol Corp., MVA calculation
US$ in thousands
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 »
- Market (fair) value of Amphenol
- The market value exhibits a consistent upward trend over the five-year period. Starting at approximately 34.9 billion USD in 2019, it increased to roughly 43.9 billion USD in 2020. This upward momentum continued, reaching about 53.2 billion USD in 2021. There was a slight decline in 2022 to approximately 52.8 billion USD, followed by a significant rise to about 66.8 billion USD in 2023. Overall, the market value more than doubled from 2019 to 2023.
- Invested capital
- The invested capital also shows a steady increase each year, beginning at approximately 9.0 billion USD in 2019. It rose to about 10.0 billion USD in 2020, then to around 12.0 billion USD in 2021. The growth persisted in the subsequent years, with invested capital reaching approximately 12.8 billion USD in 2022 and further increasing to around 13.8 billion USD in 2023. This pattern indicates ongoing investments and asset growth within the company.
- Market value added (MVA)
- Market value added, representing the difference between market value and invested capital, shows a significant growth trend over the period. Starting at approximately 25.9 billion USD in 2019, it increased substantially to about 33.8 billion USD in 2020. The upward trajectory continued, reaching approximately 41.2 billion USD in 2021. Although there was a slight dip in 2022 to around 40.0 billion USD, the MVA surged again in 2023 to roughly 53.1 billion USD. This suggests that the market perceives the company is generating value well beyond the invested capital.
MVA Spread Ratio
Amphenol Corp., 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 thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Apple Inc. | ||||||
| Arista Networks Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer 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.
The analysis of the financial data over the five-year period reveals significant trends in market value added (MVA), invested capital, and MVA spread ratio.
- Market Value Added (MVA)
- The market value added shows a general upward trend from 25,872,556 thousand US dollars in 2019 to 53,081,367 thousand US dollars in 2023. This reflects an overall strong increase in the company's market value creation over the period, despite a slight decrease in 2022 compared to 2021.
- Invested Capital
- Invested capital consistently increased year over year, rising from 9,029,400 thousand US dollars in 2019 to 13,752,400 thousand US dollars in 2023. This steady growth suggests ongoing investments in the company's asset base or operations.
- MVA Spread Ratio
- The MVA spread ratio, indicating the efficiency of value creation relative to invested capital, fluctuated between 286.54% and 385.98%. It peaked in 2023 at 385.98%, the highest level observed, after a slight decline in 2022. This suggests an improvement in value generation efficiency relative to capital invested, especially in the most recent year.
In summary, the data displays robust growth in market value added and invested capital, with an overall positive trend in the MVA spread ratio. The company's ability to create value from its invested capital appears to have strengthened, particularly evident in the increase recorded in 2023.
MVA Margin
Amphenol Corp., 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 thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Net sales | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Apple Inc. | ||||||
| Arista Networks Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer 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 ÷ Net sales
= 100 × ÷ =
3 Click competitor name to see calculations.
The financial data reveals several notable trends over the five-year period ending in 2023. The Market Value Added (MVA) demonstrates a generally upward trajectory, rising from approximately 25.87 billion US dollars in 2019 to 53.08 billion US dollars in 2023. While there is a slight dip observed in 2022 compared to 2021, the overall increase by 2023 is significant, indicating enhanced value creation for the company’s shareholders during the period.
Net sales exhibit consistent growth from 2019 through 2022, increasing from around 8.23 billion to 12.62 billion US dollars. In 2023, net sales slightly decrease to approximately 12.55 billion US dollars, signaling a potential plateau or mild contraction after several years of continuous increase. This minor decline warrants attention to determine if it represents a short-term fluctuation or an emerging trend.
Regarding the MVA margin, which reflects the efficiency of value generation relative to net sales, there is a notable fluctuation during the period. Starting at 314.54% in 2019, the margin peaks at 393.43% in 2020, declines modestly in the following years, reaching 316.88% in 2022, before sharply increasing again to 422.8% in 2023. This indicates variable but generally strong value creation relative to sales, with exceptional performance observed in 2020 and 2023.
- Market Value Added (MVA)
- Overall growth from 25.87 billion to 53.08 billion US dollars between 2019 and 2023, with a minor dip in 2022.
- Net Sales
- Steady increase from 8.23 billion in 2019 to 12.62 billion in 2022, followed by a slight decline to 12.55 billion in 2023.
- MVA Margin
- Fluctuating margin, peaking in 2020 and 2023 at over 390%, with a dip in the intermediate years, indicating variable efficiency in value creation relative to sales.
In summary, the data points to strong market value growth and generally increasing sales, accompanied by fluctuating but high MVA margins. The slight dips in sales and MVA in some years suggest possible external challenges or internal adjustments, but the overall financial performance demonstrates robust value generation throughout the period.