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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- Income Statement
- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Net Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
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MVA
Thermo Fisher Scientific Inc., 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 »
- Market (fair) value of Thermo Fisher
- The market value demonstrated an overall increasing trend from 203,250 million US dollars at the end of 2020 to a peak of 248,912 million in 2021. Subsequently, there was a slight decline to 244,583 million in 2022, followed by a minor recovery to 247,771 million in 2023. However, the value decreased again in 2024 to 231,619 million, reflecting a downward trend in the latter years examined.
- Invested capital
- Invested capital showed a continuous growth from 61,158 million US dollars in 2020 to 85,573 million in 2023. In 2024, however, invested capital declined somewhat to 82,071 million, marking the first reduction after several years of expansion.
- Market value added (MVA)
- Market value added increased significantly from 142,092 million US dollars at the end of 2020 to a high of 169,136 million in 2021. This was followed by a decrease to 161,769 million in 2022. In 2023, MVA showed a stabilization with a slight rise to 162,198 million but then declined to 149,548 million in 2024. This pattern indicates volatility in value creation relative to invested capital after 2021.
- Overall Trends and Insights
- The data reveals that while both market value and invested capital expanded strongly through 2021 and 2023, both metrics experienced declines in 2024. The market value peaked early but declined in the last recorded period, signaling potential market or operational challenges affecting valuation. Invested capital increased as well, though the slight reduction in 2024 suggests possible divestments or lower capital investment. The MVA, a measure of value created above invested capital, followed a similar trend, peaking in 2021 and declining thereafter, which may point to diminishing returns on invested capital in recent years.
MVA Spread Ratio
Thermo Fisher Scientific Inc., 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 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
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 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The market value added shows a general increase from 2020 to 2021, rising from 142,092 million USD to 169,136 million USD. However, after this peak, the MVA declines slightly over the subsequent years, falling to 161,769 million USD in 2022, showing a minor increase in 2023 to 162,198 million USD, and then declining more noticeably to 149,548 million USD in 2024. This pattern suggests an initial growth in market value followed by gradual depreciation in the later years.
- Invested Capital
- Invested capital exhibits a steady rising trend from 2020 through 2023, increasing from 61,158 million USD to a high of 85,573 million USD. This growth indicates increased investment in the company’s operations during this period. In 2024, there is a slight decrease to 82,071 million USD, which could indicate a reduction in investment or asset base.
- MVA Spread Ratio
- The MVA spread ratio consistently decreases year over year, starting at 232.34% in 2020 and declining to 182.22% by 2024. This decline aligns with the decreasing trend in market value added relative to invested capital, reflecting a reduction in the spread between the company’s market value and the capital invested.
- Overall Analysis
- The data suggests that although the company has increased its invested capital over time, especially until 2023, the market value added has not maintained the same level of growth and has generally declined after 2021. The continuous decline in the MVA spread ratio indicates diminishing returns on invested capital or a decreasing market premium over the book value of investments. This trend may warrant further examination into the company’s operational efficiency, market perception, or other external factors impacting its valuation.
MVA Margin
Thermo Fisher Scientific Inc., 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 | ||||||
| Revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
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 ÷ Revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added exhibited an initial increase from 142,092 million US dollars in 2020 to a peak of 169,136 million US dollars in 2021. This was followed by a decline in subsequent years, dropping to 161,769 million in 2022, slightly increasing to 162,198 million in 2023, and then declining more noticeably to 149,548 million by the end of 2024. Overall, the MVA shows a peak in 2021, with a general downward trend over the last three years.
- Revenues
- Revenues showed a consistent upward trend from 32,218 million US dollars in 2020 to a high of 44,915 million in 2022. However, in 2023, there was a slight decrease to 42,857 million and stabilization at a similar level of 42,879 million in 2024. This indicates growth over the initial years followed by a plateau and minor decline in the last two years.
- MVA Margin
- The MVA margin, expressed as a percentage, steadily declined from 441.03% in 2020 to 348.77% in 2024. Despite some fluctuations, such as a moderate increase in 2023 to 378.46% after a dip in 2022, the overall trend is downward. This suggests that the efficiency in generating market value relative to revenues has been decreasing over the period under review.
- Summary of Trends
- The data reveals that while revenues increased notably through 2022 before stabilizing, the Market Value Added peaked earlier in 2021 and then declined. The simultaneous decline in the MVA margin suggests a reduction in value creation relative to revenue, indicating potential challenges in maintaining investor value or operational efficiency. The divergence between revenue growth and MVA reduction highlights a possible disconnect between sales performance and market valuation over the recent years.