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
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 Value Added (MVA) exhibits a strong upward trajectory over the five-year period ending December 31, 2023. The consistent expansion of MVA indicates a substantial increase in the market's valuation of the organization relative to the capital invested in its operations, signaling significant wealth creation for shareholders.
- Market Value Progression
- The market capitalization grew from US$ 34.9 billion in 2019 to US$ 66.8 billion by 2023. This growth was characterized by a consistent increase from 2019 through 2021, a marginal contraction in 2022, and a sharp acceleration in 2023, where the valuation increased by approximately US$ 14 billion within a single fiscal year.
- Invested Capital Trends
- Invested capital demonstrates a steady and incremental rise, increasing from US$ 9.03 billion in 2019 to US$ 13.75 billion in 2023. This linear growth suggests a disciplined and consistent approach to capital allocation and investment in the company's asset base.
- MVA Performance and Correlation
- MVA more than doubled over the analyzed period, rising from US$ 25.87 billion in 2019 to US$ 53.08 billion in 2023. The movement of MVA closely tracks the fluctuations in market value, confirming that the increase in shareholder wealth is driven by market appreciation. The temporary decline in MVA observed in 2022 mirrors the dip in market value, while the subsequent surge in 2023 underscores a strong recovery and expansion in perceived corporate value.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
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 | 53,081,367) | 39,999,355) | 41,153,892) | 33,830,514) | 25,872,556) | |
| Invested capital2 | 13,752,400) | 12,775,400) | 12,048,900) | 10,035,300) | 9,029,400) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 385.98% | 313.10% | 341.56% | 337.12% | 286.54% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Apple Inc. | 4,423.16% | 5,157.62% | 5,626.48% | 4,945.07% | — | |
| Arista Networks Inc. | 1,575.63% | 1,226.33% | 1,872.91% | — | — | |
| Cisco Systems Inc. | 279.75% | 214.20% | 329.31% | — | — | |
| Dell Technologies Inc. | 2.11% | 31.48% | 53.40% | — | — | |
| Lumentum Holdings Inc. | 73.48% | 196.72% | 256.49% | — | — | |
| Super Micro Computer Inc. | 466.63% | 91.12% | 50.17% | — | — | |
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 × 53,081,367 ÷ 13,752,400 = 385.98%
4 Click competitor name to see calculations.
Between the end of 2019 and 2023, there is a significant upward trajectory in the company's capacity to create value beyond its invested capital. While a brief period of contraction occurred in 2022, the overall trend indicates substantial growth in market valuation relative to the capital employed in operations.
- Market Value Added (MVA)
- MVA exhibited strong growth over the five-year period, rising from 25,872,556 thousand US dollars in 2019 to 53,081,367 thousand US dollars by the end of 2023. A peak was reached in 2021 at 41,153,892 thousand US dollars, followed by a marginal decrease to 39,999,355 thousand US dollars in 2022, before surging to its highest recorded level in 2023.
- Invested Capital
- Invested capital demonstrated a consistent and steady increase throughout the analyzed timeframe. Starting at 9,029,400 thousand US dollars in 2019, the capital base expanded annually, reaching 13,752,400 thousand US dollars by December 31, 2023. This represents a stable expansion of the company's asset base to support its operations.
- MVA Spread Ratio
- The MVA spread ratio, which measures the efficiency of value creation relative to invested capital, trended upward from 286.54% in 2019 to a peak of 385.98% in 2023. Similar to the MVA trend, a temporary decline was observed in 2022, where the ratio dropped to 313.10%. However, the recovery in 2023 suggests a significant acceleration in market value creation that outpaced the growth of invested capital.
The correlation between the steady rise in invested capital and the more aggressive growth in MVA indicates that the company has effectively leveraged its investments to generate disproportionately higher market value. The sharp increase in the spread ratio in 2023 highlights a period of exceptional value realization.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
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 | 53,081,367) | 39,999,355) | 41,153,892) | 33,830,514) | 25,872,556) | |
| Net sales | 12,554,700) | 12,623,000) | 10,876,300) | 8,598,900) | 8,225,400) | |
| Performance Ratio | ||||||
| MVA margin2 | 422.80% | 316.88% | 378.38% | 393.43% | 314.54% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Apple Inc. | 695.76% | 609.53% | 653.71% | 648.08% | — | |
| Arista Networks Inc. | 1,189.41% | 844.93% | 1,097.06% | — | — | |
| Cisco Systems Inc. | 278.31% | 240.26% | 367.17% | — | — | |
| Dell Technologies Inc. | 1.17% | 16.47% | 45.88% | — | — | |
| Lumentum Holdings Inc. | 120.58% | 287.34% | 289.28% | — | — | |
| Super Micro Computer Inc. | 158.10% | 38.75% | 18.09% | — | — | |
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 × 53,081,367 ÷ 12,554,700 = 422.80%
3 Click competitor name to see calculations.
The financial data indicates a strong upward trajectory in market value creation between 2019 and 2023, characterized by substantial growth in Market Value Added (MVA) and a generally expanding MVA margin despite fluctuations in net sales.
- Market Value Added (MVA) Trends
- MVA demonstrated consistent growth over the five-year period, rising from 25,872,556 thousand US$ in 2019 to 53,081,367 thousand US$ in 2023. Although a marginal contraction occurred in 2022, the overall trend reflects a significant increase in the market's valuation of the entity's value creation beyond its invested capital.
- Net Sales Performance
- Net sales exhibited steady growth from 2019 through 2022, increasing from 8,225,400 thousand US$ to a peak of 12,623,000 thousand US$. A slight stabilization is observed in 2023, with sales remaining relatively flat at 12,554,700 thousand US$.
- MVA Margin Analysis
- The MVA margin experienced notable volatility, starting at 314.54% in 2019 and reaching a peak of 422.80% in 2023. A decline is observed in 2022, where the margin dropped to 316.88%, coinciding with a period where net sales grew but market value added slightly decreased. The sharp recovery in 2023 suggests a significant increase in market confidence and valuation that decoupled from the slight decrease in net sales.
- Comparative Value Growth
- The expansion of MVA significantly outpaced the growth of net sales. While net sales increased by approximately 52.7% over the period, MVA grew by approximately 104.8%. This divergence indicates that the market's perception of future growth and value generation improved at a rate much higher than the actual growth in top-line revenue.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?