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
Danaher Corp., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Danaher Corp. market (fair) value less invested capital. | Danaher Corp. MVA increased from 2022 to 2023 but then decreased significantly from 2023 to 2024. |
MVA Spread Ratio
Danaher Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 90,034) | 123,831) | 122,957) | 139,890) | 116,100) | |
| Invested capital2 | 73,131) | 78,561) | 78,342) | 74,633) | 67,123) | |
| Performance Ratio | ||||||
| MVA spread ratio3 | 123.11% | 157.62% | 156.95% | 187.44% | 172.97% | |
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| AbbVie Inc. | 483.23% | 438.96% | 297.39% | 253.64% | 172.70% | |
| Amgen Inc. | 238.60% | 213.63% | 308.27% | 303.88% | 343.98% | |
| Bristol-Myers Squibb Co. | 155.28% | 100.64% | 160.91% | 138.81% | 109.83% | |
| Eli Lilly & Co. | 2,281.36% | 2,390.18% | 1,239.79% | 833.40% | 778.02% | |
| Gilead Sciences Inc. | 276.96% | 148.05% | 175.26% | 119.58% | 125.56% | |
| Johnson & Johnson | 288.70% | 309.06% | 288.40% | 366.82% | 363.75% | |
| Merck & Co. Inc. | 231.53% | 412.35% | 312.72% | 223.02% | 292.93% | |
| Pfizer Inc. | 40.73% | 40.45% | 124.43% | 210.66% | 116.68% | |
| Regeneron Pharmaceuticals Inc. | 416.61% | 663.41% | 521.52% | 461.61% | 508.24% | |
| Thermo Fisher Scientific Inc. | 182.22% | 189.54% | 195.34% | 212.01% | 232.34% | |
| Vertex Pharmaceuticals Inc. | 1,158.91% | 712.26% | 484.09% | 564.91% | 575.24% | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 90,034 ÷ 73,131 = 123.11%
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. | Danaher Corp. MVA spread ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
MVA Margin
Danaher Corp., MVA margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | 90,034) | 123,831) | 122,957) | 139,890) | 116,100) | |
| Sales | 23,875) | 23,890) | 31,471) | 29,453) | 22,284) | |
| Add: Increase (decrease) in contract liabilities | (183) | 37) | 57) | 409) | 611) | |
| Adjusted sales | 23,692) | 23,927) | 31,528) | 29,862) | 22,895) | |
| Performance Ratio | ||||||
| MVA margin2 | 380.02% | 517.54% | 389.99% | 468.46% | 507.10% | |
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| AbbVie Inc. | 594.14% | 551.18% | 420.74% | 432.93% | 391.08% | |
| Amgen Inc. | 470.63% | 555.51% | 493.74% | 503.37% | 550.26% | |
| Bristol-Myers Squibb Co. | 201.43% | 151.08% | 250.01% | 240.26% | 232.86% | |
| Eli Lilly & Co. | 1,813.26% | 2,058.21% | 1,055.66% | 769.29% | 778.57% | |
| Gilead Sciences Inc. | 429.17% | 251.89% | 295.97% | 211.56% | 259.24% | |
| Johnson & Johnson | 346.20% | 359.73% | 345.74% | 383.60% | 433.17% | |
| Merck & Co. Inc. | 286.58% | 479.92% | 390.05% | 323.90% | 349.01% | |
| Pfizer Inc. | 86.91% | 105.20% | 136.21% | 224.83% | 284.06% | |
| Regeneron Pharmaceuticals Inc. | 365.32% | 605.08% | 525.04% | 312.14% | 495.20% | |
| Thermo Fisher Scientific Inc. | 348.77% | 378.46% | 360.17% | 431.35% | 441.03% | |
| Vertex Pharmaceuticals Inc. | 951.31% | 955.82% | 714.32% | 700.10% | 754.94% | |
Based on: 10-K (reporting date: 2024-12-31), 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).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Adjusted sales
= 100 × 90,034 ÷ 23,692 = 380.02%
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. | Danaher Corp. MVA margin ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |