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.
Paying user area
Try for free
Devon Energy Corp. pages available for free this week:
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Current Ratio since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Debt
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Devon Energy Corp. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
MVA
Devon Energy Corp., MVA calculation
US$ in millions
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 »
The financial data reveals several notable trends in the key valuation and investment metrics over the five-year period analyzed.
- Market (fair) value of Devon
- This metric experienced a decrease from 19,571 million US dollars at the end of 2018 to 14,454 million in 2019. Subsequently, it increased to 20,380 million in 2020, followed by a significant surge in 2021 to 43,826 million. The value remained relatively stable with a slight increase to 44,066 million in 2022. Overall, this indicates a strong recovery and pronounced growth after the initial dip in 2019.
- Invested capital
- The invested capital shows a continuous decline from 15,392 million in 2018 to a low of 7,866 million in 2020. However, it rebounded sharply in 2021 to 16,727 million and further increased to 19,717 million in 2022. This pattern suggests initial capital reduction followed by significant reinvestment or acquisitions in the later years.
- Market value added (MVA)
- MVA, which reflects the value created beyond the invested capital, decreased from 4,178 million in 2018 to 3,490 million in 2019. It then increased markedly to 12,514 million in 2020, and surged further to 27,099 million in 2021. The value slightly declined to 24,349 million in 2022 but remained substantially higher than the earlier years. This indicates a growing premium placed by the market on the company’s value creation capacity over time.
In summary, the company exhibited a dip in market valuation and invested capital in the early years of the period, followed by strong growth and increasing market value added from 2020 onwards. The upward trend in market value added relative to invested capital highlights improved market confidence and effective capital utilization in recent years.
MVA Spread Ratio
Devon Energy Corp., 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 millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
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 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added exhibits a fluctuating trend over the analyzed periods. Initially, there is a decline from approximately 4,178 million US dollars at the end of 2018 to 3,490 million in 2019. This is followed by a substantial increase, peaking at 12,514 million in 2020 and reaching its highest value at 27,099 million in 2021. In the subsequent year, 2022, the value decreases to 24,349 million, still maintaining a high level compared to the earlier years in the series.
- Invested Capital
- The invested capital data reveals some variability with a general upward movement toward the latter part of the period. It starts at 15,392 million US dollars in 2018, decreases to 10,964 million in 2019, and further to 7,866 million in 2020. However, from 2020 to 2021, the invested capital nearly doubles, reaching 16,727 million. This upward trend continues into 2022, with a rise to 19,717 million, the highest level within the period analyzed.
- MVA Spread Ratio
- The MVA spread ratio demonstrates considerable volatility and significant growth during the period. Beginning at 27.15% in 2018, it increases moderately to 31.84% in 2019. A dramatic surge occurs in 2020, with the ratio rising sharply to 159.1%, and a slight increase follows in 2021 to 162.01%. In 2022, the ratio declines to 123.49% but remains considerably elevated compared to the first two years.
- Overall Analysis
- The data shows that after an initial decline in market value added and invested capital in 2019 and 2020, both metrics experience substantial growth through 2021, with a slight reduction in MVA and continued increase in invested capital in 2022. The MVA spread ratio's large increases in 2020 and 2021 suggest periods of significant value creation relative to invested capital, although the decrease in 2022 may indicate some normalization or deceleration of this trend. The patterns imply a phase of enhanced financial performance and capital deployment in the recent years analyzed, despite some variability.
MVA Margin
Devon Energy Corp., 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 millions) | ||||||
| Market value added (MVA)1 | ||||||
| Revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
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 ÷ Revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added exhibited significant fluctuations over the analyzed period. Starting at $4,178 million in 2018, it decreased to $3,490 million in 2019, reflecting a decline. However, there was a sharp increase in 2020, reaching $12,514 million, followed by a continued rise to $27,099 million in 2021. In 2022, a slight decrease to $24,349 million was observed, indicating a minor retreat from the peak level attained the previous year.
- Revenues
- Revenues showed a declining trend from 2018 to 2020, falling from $10,734 million in 2018 to $6,220 million in 2019, and further to $4,828 million in 2020. This downward trajectory was reversed in 2021, with revenues more than doubling to $12,206 million, followed by continued growth to $19,169 million in 2022, reaching the highest level of the considered timeframe.
- MVA Margin
- The MVA margin, expressed as a percentage, displayed considerable volatility. Initially, it was 38.93% in 2018 and increased to 56.12% in 2019. A dramatic surge occurred in 2020, with the MVA margin rising to an exceptionally high level of 259.21%, indicating a period of significant value creation relative to revenues. Although it decreased to 222.02% in 2021, it remained elevated, before declining further to 127.02% in 2022. Despite this decrease, the margin stayed well above pre-2020 levels.