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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- Statement of Comprehensive Income
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Reportable Segments
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Selected Financial Data since 2005
- Aggregate Accruals
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MVA
Advanced Micro Devices Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
1 Fair value of debt. See details »
2 Invested capital. See details »
The market value of the company demonstrates significant fluctuation over the observed period. Initially decreasing from 2021 to 2022, it experienced substantial growth in 2023, followed by a decline in 2024, and then a further increase in 2025. Invested capital shows a large increase between 2021 and 2022, then stabilizes with relatively minor changes through 2025. Market value added (MVA) mirrors the trend of the market value, with a decrease in 2022, a substantial increase in 2023, a decrease in 2024, and a subsequent increase in 2025.
- Market Value Trend
- The market value began at US$143,699 million in 2021, decreased to US$128,679 million in 2022, then rose dramatically to US$272,123 million in 2023. A decrease to US$182,308 million was observed in 2024, before recovering to US$325,288 million in 2025. This indicates considerable volatility in investor perception of the company’s value.
- Invested Capital Trend
- Invested capital increased significantly from US$6,195 million in 2021 to US$58,525 million in 2022. From 2022 through 2025, invested capital remained relatively stable, fluctuating between US$57,883 million and US$61,734 million. This suggests a period of substantial investment followed by a consolidation of capital deployment.
- Market Value Added (MVA) Trend
- MVA followed a similar pattern to the market value. It decreased from US$137,504 million in 2021 to US$70,154 million in 2022, increased substantially to US$214,240 million in 2023, decreased to US$124,081 million in 2024, and then increased to US$263,554 million in 2025. The magnitude of MVA suggests the company is generating value for its investors, although this value creation is not consistent year-over-year.
The relationship between market value and invested capital suggests that changes in market value are not directly proportional to changes in invested capital. The large increase in market value in 2023, despite relatively stable invested capital, indicates that factors beyond capital investment are significantly influencing investor valuation. The fluctuations in MVA highlight the dynamic nature of the company’s value creation and the sensitivity of its market valuation to external factors.
MVA Spread Ratio
Advanced Micro Devices Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
1 MVA. See details »
2 Invested capital. See details »
3 2025 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited significant fluctuations over the observed period. Initially, a substantial decrease in MVA is noted between December 25, 2021, and December 31, 2022, followed by a considerable recovery and subsequent decline, and then another increase through December 27, 2025. Invested capital demonstrated an initial surge in 2022, followed by relative stability and a gradual increase over the remaining years. The MVA spread ratio, calculated as MVA divided by Invested Capital, mirrored the volatility of the MVA, displaying dramatic shifts year-over-year.
- MVA Trend
- The MVA began at US$137,504 million in 2021, then decreased to US$70,154 million in 2022. A strong recovery occurred in 2023, with MVA reaching US$214,240 million. This was followed by a decline to US$124,081 million in 2024, before increasing again to US$263,554 million in 2025. This pattern suggests sensitivity to market conditions or company-specific events.
- Invested Capital Trend
- Invested capital increased substantially from US$6,195 million in 2021 to US$58,525 million in 2022. Subsequent years showed comparatively modest changes, with values of US$57,883 million, US$58,227 million, and US$61,734 million in 2023, 2024, and 2025 respectively. The large initial increase in invested capital may indicate a significant investment or acquisition in 2022.
- MVA Spread Ratio Trend
- The MVA spread ratio experienced substantial volatility. It decreased from 2,219.60% in 2021 to 119.87% in 2022, coinciding with the decrease in MVA and the increase in invested capital. The ratio then increased to 370.13% in 2023, decreased to 213.10% in 2024, and rose again to 426.92% in 2025. The high values of the ratio, particularly in 2021 and 2025, suggest that the market significantly values the company’s ability to generate returns above its invested capital. The fluctuations indicate a changing perception of this value over time.
The relationship between MVA and invested capital, as reflected in the MVA spread ratio, demonstrates a dynamic interplay. The significant changes in the ratio suggest that the market’s assessment of the company’s value creation relative to its capital base is subject to considerable variation.
MVA Margin
Advanced Micro Devices Inc., MVA margin calculation, comparison to benchmarks
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Net revenue | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
1 MVA. See details »
2 2025 Calculation
MVA margin = 100 × MVA ÷ Net revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
The analysis reveals significant fluctuations in Market Value Added (MVA) and its associated margin over the five-year period. While net revenue generally increased, the relationship between revenue growth and MVA creation was not consistently positive.
- Market Value Added (MVA)
- The MVA experienced substantial volatility. It decreased from US$137,504 million in 2021 to US$70,154 million in 2022, representing a significant decline. A strong recovery was then observed in 2023, with MVA reaching US$214,240 million. However, this was followed by a decrease to US$124,081 million in 2024. The final year examined, 2025, showed another increase, with MVA reaching US$263,554 million. This pattern suggests sensitivity to external factors or internal strategic shifts impacting investor perception of future value creation.
- Net Revenue
- Net revenue demonstrated an overall upward trend, increasing from US$16,434 million in 2021 to US$34,639 million in 2025. The most substantial increase occurred between 2021 and 2022, followed by a slight decrease in 2023. Revenue continued to grow in 2024 and 2025, though not at the same rate as the initial surge. This indicates consistent, albeit uneven, growth in sales.
- MVA Margin
- The MVA margin exhibited considerable variation, mirroring the fluctuations in MVA. It peaked at 836.71% in 2021, then decreased dramatically to 297.25% in 2022. A substantial rebound occurred in 2023, with the margin reaching 944.62%, the highest value in the observed period. The margin then declined to 481.21% in 2024 before increasing again to 760.86% in 2025. The high margins, particularly in 2021 and 2023, suggest periods where the market significantly rewarded the company’s performance relative to its revenue. The lower margins in 2022 and 2024 indicate a diminished market premium, potentially due to concerns about future growth or profitability.
The divergence between revenue growth and MVA suggests that factors beyond top-line performance significantly influence market valuation. The substantial swings in MVA margin highlight the importance of understanding investor expectations and the company’s ability to meet or exceed those expectations.