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
Builders FirstSource 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 | Builders FirstSource Inc. market (fair) value less invested capital. | Builders FirstSource Inc. MVA increased from 2020 to 2021 but then decreased significantly from 2021 to 2022. |
MVA Spread Ratio
Builders FirstSource 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 | 6,314,192) | 7,954,471) | 7,873,973) | 2,347,161) | 1,000,760) | |
| Invested capital2 | 8,565,898) | 8,507,614) | 3,091,935) | 2,419,816) | 2,393,541) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 73.71% | 93.50% | 254.66% | 97.00% | 41.81% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Boeing Co. | 250.89% | 256.38% | 257.78% | 489.80% | — | |
| Caterpillar Inc. | 194.12% | 164.79% | 176.94% | 108.09% | — | |
| Eaton Corp. plc | 149.39% | 132.30% | 124.83% | 66.62% | — | |
| GE Aerospace | 84.87% | 110.77% | 64.66% | 58.28% | — | |
| Honeywell International Inc. | 224.23% | 209.78% | 236.48% | 239.06% | — | |
| Lockheed Martin Corp. | 399.68% | 319.28% | 284.59% | — | — | |
| RTX Corp. | 54.30% | 57.80% | 31.41% | 82.79% | — | |
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 × 6,314,192 ÷ 8,565,898 = 73.71%
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. | Builders FirstSource Inc. MVA spread ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
MVA Margin
Builders FirstSource 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 | 6,314,192) | 7,954,471) | 7,873,973) | 2,347,161) | 1,000,760) | |
| Net sales | 22,726,418) | 19,893,856) | 8,558,874) | 7,280,431) | 7,724,771) | |
| Performance Ratio | ||||||
| MVA margin2 | 27.78% | 39.98% | 92.00% | 32.24% | 12.96% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Boeing Co. | 191.47% | 203.39% | 211.11% | 227.39% | — | |
| Caterpillar Inc. | 188.17% | 190.18% | 245.71% | 116.96% | — | |
| Eaton Corp. plc | 221.57% | 198.58% | 191.64% | 91.84% | — | |
| GE Aerospace | 76.94% | 111.81% | 103.34% | 86.63% | — | |
| Honeywell International Inc. | 295.90% | 293.22% | 350.74% | 278.15% | — | |
| Lockheed Martin Corp. | 161.14% | 136.30% | 122.08% | — | — | |
| RTX Corp. | 91.75% | 102.95% | 64.17% | 111.10% | — | |
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 ÷ Net sales
= 100 × 6,314,192 ÷ 22,726,418 = 27.78%
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. | Builders FirstSource Inc. MVA margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |