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
Applied Materials Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27), 10-K (reporting date: 2018-10-28).
1 Fair value of debt. See details »
2 Invested capital. See details »
| Item | Description | The company |
|---|---|---|
| MVA | Applied Materials Inc. market (fair) value less invested capital. | Applied Materials Inc. MVA decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level. |
MVA Spread Ratio
Applied Materials Inc., MVA spread ratio calculation, comparison to benchmarks
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | Oct 28, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 119,294) | 76,772) | 119,950) | 72,720) | 48,841) | 25,613) | |
| Invested capital2 | 17,777) | 14,890) | 14,717) | 13,090) | 10,129) | 10,187) | |
| Performance Ratio | |||||||
| MVA spread ratio3 | 671.06% | 515.59% | 815.05% | 555.54% | 482.20% | 251.42% | |
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Advanced Micro Devices Inc. | 370.13% | 119.87% | 2,219.60% | 2,281.37% | 1,656.68% | — | |
| Analog Devices Inc. | 117.77% | 103.56% | 117.94% | 210.89% | 164.19% | 113.22% | |
| Broadcom Inc. | 780.15% | 327.92% | 373.47% | 237.74% | 168.52% | 161.97% | |
| Intel Corp. | 136.50% | 56.17% | 138.47% | 204.49% | 286.44% | — | |
| KLA Corp. | 749.44% | 664.92% | 735.85% | 430.36% | 274.54% | 618.88% | |
| Lam Research Corp. | 510.18% | 411.90% | 697.09% | 503.38% | 326.52% | 224.36% | |
| Micron Technology Inc. | 65.44% | 17.24% | 80.72% | 54.74% | 45.95% | 56.63% | |
| NVIDIA Corp. | 2,592.75% | 3,534.07% | 2,454.59% | 1,247.43% | 1,776.46% | — | |
| ON Semiconductor Corp. | 242.64% | 312.72% | 289.98% | 209.73% | 87.91% | — | |
| Qualcomm Inc. | 331.81% | 372.61% | 739.14% | 815.45% | 438.33% | 401.62% | |
| Texas Instruments Inc. | 565.70% | 853.39% | 887.48% | 1,141.98% | 946.70% | — | |
Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27), 10-K (reporting date: 2018-10-28).
1 MVA. See details »
2 Invested capital. See details »
3 2023 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 119,294 ÷ 17,777 = 671.06%
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. | Applied Materials Inc. MVA spread ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
MVA Margin
Applied Materials Inc., MVA margin calculation, comparison to benchmarks
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | Oct 28, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 119,294) | 76,772) | 119,950) | 72,720) | 48,841) | 25,613) | |
| Net sales | 26,517) | 25,785) | 23,063) | 17,202) | 14,608) | 17,253) | |
| Performance Ratio | |||||||
| MVA margin2 | 449.88% | 297.74% | 520.10% | 422.74% | 334.35% | 148.45% | |
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Advanced Micro Devices Inc. | 944.62% | 297.25% | 836.71% | 1,019.76% | 838.80% | — | |
| Analog Devices Inc. | 422.86% | 388.08% | 757.72% | 685.43% | 502.84% | 340.05% | |
| Broadcom Inc. | 1,364.98% | 613.42% | 879.58% | 656.07% | 447.69% | 346.64% | |
| Intel Corp. | 231.83% | 78.99% | 155.07% | 215.26% | 320.84% | — | |
| KLA Corp. | 595.30% | 562.17% | 725.25% | 482.13% | 383.29% | 401.11% | |
| Lam Research Corp. | 444.18% | 298.83% | 497.71% | 492.91% | 285.01% | 195.14% | |
| Micron Technology Inc. | 225.16% | 29.56% | 135.02% | 108.00% | 76.12% | 65.98% | |
| NVIDIA Corp. | 2,051.27% | 2,368.93% | 1,919.01% | 1,615.83% | 725.25% | — | |
| ON Semiconductor Corp. | 321.21% | 351.98% | 325.29% | 274.96% | 109.25% | — | |
| Qualcomm Inc. | 291.70% | 248.18% | 445.16% | 615.38% | 387.14% | 332.30% | |
| Texas Instruments Inc. | 729.45% | 748.35% | 793.86% | 1,023.69% | 793.53% | — | |
Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27), 10-K (reporting date: 2018-10-28).
1 MVA. See details »
2 2023 Calculation
MVA margin = 100 × MVA ÷ Net sales
= 100 × 119,294 ÷ 26,517 = 449.88%
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. | Applied Materials Inc. MVA margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |