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
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Price to FCFE (P/FCFE)
- Price to Operating Profit (P/OP) since 2005
- Analysis of Revenues
- Analysis of Debt
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MVA
Valero Energy Corp., MVA calculation
US$ in millions
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 (fair) value of Valero
- The market value exhibited an overall upward trend from 2019 to 2023, increasing from $42,755 million in 2019 to a peak of $63,442 million in 2022, before experiencing a slight decline to $61,180 million in 2023. This demonstrates significant growth over the five-year period, with the largest year-over-year increase occurring between 2021 and 2022.
- Invested capital
- Invested capital showed a steady increase throughout the period, rising from $40,757 million in 2019 to $51,119 million in 2023. The growth was consistent each year, without any declines, indicating ongoing investment or capital deployment within the company.
- Market value added (MVA)
- The Market Value Added followed a positive trajectory overall but with notable fluctuations. Starting at $1,998 million in 2019, MVA increased substantially to $8,785 million in 2020, slightly rising to $8,839 million in 2021. It peaked at $13,670 million in 2022 before declining to $10,061 million in 2023. This pattern suggests that while the company generated significant value over its invested capital, the value creation was more volatile than the underlying invested capital growth, particularly with a marked increase in 2022 and a subsequent decrease in 2023.
MVA Spread Ratio
Valero Energy Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in 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: 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 × ÷ =
4 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added demonstrated significant fluctuations over the observed five-year period. Starting at 1,998 million US dollars at the end of 2019, MVA experienced a substantial increase in 2020, rising to 8,785 million US dollars. This elevated level was relatively stable in 2021 with a slight increase to 8,839 million US dollars. In 2022, the MVA peaked at 13,670 million US dollars, indicating a strong positive market valuation impact. However, in 2023, MVA declined to 10,061 million US dollars, reflecting a reduction from the prior year's peak but still maintaining a value notably higher than the initial 2019 figure.
- Invested Capital
- Invested capital showed a consistent upward trend throughout the period. It increased steadily from 40,757 million US dollars at the end of 2019 to 51,119 million US dollars by the end of 2023. This represents an approximate 25.4% growth in invested capital over five years, implying ongoing capital deployment and expansion activities within the company.
- MVA Spread Ratio
- The MVA spread ratio, representing the relationship between MVA and invested capital expressed as a percentage, indicated variable profitability or value creation efficiency. Beginning at 4.9% in 2019, the ratio surged to a high of 21.44% in 2020, followed by a slight decrease to 19.85% in 2021. The ratio peaked again in 2022 at 27.46%, which corresponds with the peak in MVA, indicating optimal value generation relative to capital invested during that year. In 2023, the ratio dropped to 19.68%, mirroring the decline in MVA but still remaining significantly higher than the 2019 base.
- Overall Analysis
- Over the five-year span, the company demonstrated growth in invested capital alongside fluctuating but generally improving market value added metrics. The peak in MVA and MVA spread ratio in 2022 suggests a period of maximized market valuation performance and value creation relative to capital invested. The decline in these metrics in 2023 may point to market challenges or changes in operational efficiency impacting value creation. Despite this, the company maintains a substantially higher market value added and MVA spread ratio compared to the starting point in 2019, indicating overall positive progress in market valuation relative to invested capital.
MVA Margin
Valero Energy 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 millions) | ||||||
| Market value added (MVA)1 | ||||||
| Revenues, includes excise taxes on sales by certain of foreign operations | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
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 ÷ Revenues, includes excise taxes on sales by certain of foreign operations
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The MVA experienced significant fluctuations over the five-year period. It started at 1,998 million USD in 2019, sharply increased to 8,785 million USD in 2020, and maintained a similar level of 8,839 million USD in 2021. In 2022, the MVA surged further to 13,670 million USD before declining to 10,061 million USD in 2023. Overall, despite some variability, the MVA shows an upward trend compared to the 2019 baseline.
- Revenues
- Revenues exhibited considerable variation during the period analyzed. Beginning at 108,324 million USD in 2019, revenues dropped substantially to 64,912 million USD in 2020, likely reflecting external economic pressures. However, revenues rebounded strongly to 113,977 million USD in 2021 and continued to rise substantially to 176,383 million USD in 2022. In 2023, revenues fell again to 144,766 million USD but remained above 2019 levels, indicating recovery and growth after the initial decline.
- MVA Margin
- The MVA margin percentage saw marked changes throughout the years. Starting from a low base of 1.84% in 2019, it surged to 13.53% in 2020, indicating improved value creation relative to revenues. However, in the next years, the margin decreased to 7.75% in both 2021 and 2022, showing a downward shift from the peak margin previously achieved. By 2023, the margin declined slightly further to 6.95%, signaling a modest reduction in efficiency related to market value generation on revenues.