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
Airbnb Inc. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value (EV)
- Return on Equity (ROE) since 2020
- Return on Assets (ROA) since 2020
- Total Asset Turnover since 2020
- Price to Sales (P/S) since 2020
- 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 Airbnb Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
MVA
Airbnb Inc., MVA calculation
US$ 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 Airbnb
- The market value of Airbnb exhibits a declining trend from 2020 through 2024. Starting at approximately $127.4 billion in 2020, it decreased sharply to about $99.8 billion in 2021, followed by a further reduction to nearly $84.1 billion in 2022. Although there was a moderate rebound to $97.6 billion in 2023, the market value declined again to $87.4 billion by the end of 2024. This pattern indicates overall volatility and a downward trajectory in market capitalization during the period observed.
- Invested capital
- Invested capital demonstrates a generally moderate increase over the five-year period with some fluctuations. Starting at around $4.8 billion in 2020, it rose steadily to a peak of approximately $6.8 billion in 2022. However, there was a decline in 2023 to about $5.8 billion, followed by a slight increase to $6.1 billion in 2024. The invested capital changes suggest some adjustments or fluctuations in the company's capital base but with no clear consistent upward or downward trend.
- Market value added (MVA)
- The market value added shows a pattern similar to the market value, indicating the difference between market value and invested capital. Beginning at roughly $122.7 billion in 2020, MVA dropped significantly in the next two years to $94.0 billion in 2021 and further to $77.3 billion in 2022. In 2023, there was an upward correction to $91.8 billion, which was followed again by a reduction to $81.3 billion in 2024. This trend mirrors market value declines and partial recoveries, reflecting changes in investors’ perceptions of value creation relative to invested capital.
MVA Spread Ratio
Airbnb Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
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.
The financial data indicates variations in market value added (MVA), invested capital, and the MVA spread ratio over the five-year period ending December 31, 2024.
- Market Value Added (MVA)
- The MVA shows a general declining trend from 122,664 million US dollars in 2020 to 81,266 million US dollars in 2024. After an initial drop in 2021 and 2022, the MVA experienced a moderate recovery in 2023, increasing to 91,771 million US dollars, followed by another decline in 2024. This pattern suggests fluctuating investor perceptions or changes in market capitalization relative to invested capital.
- Invested Capital
- Invested capital increased from 4,764 million US dollars in 2020 to a peak of 6,849 million US dollars in 2022 before decreasing to 5,829 million US dollars in 2023 and slightly rising again to 6,117 million US dollars in 2024. These movements indicate variations in the company's resource allocation or capital expenditure over the years, without a clear upward or downward long-term trend.
- MVA Spread Ratio
- The MVA spread ratio, a measure of value creation relative to invested capital, declined significantly from a high of 2,575.01% in 2020 to 1,128.97% in 2022. This ratio partially rebounded to 1,574.38% in 2023 but then decreased again to 1,328.53% in 2024. The pattern aligns with the MVA trend and reflects a diminished yet somewhat volatile capacity to generate market value over invested capital in recent years.
Overall, the data suggests a downward shift in market value creation despite moderate fluctuations in invested capital. The decline in both MVA and the MVA spread ratio points to challenges in sustaining previous high levels of market-generated value. The temporary recovery in 2023 indicates some resilience, but the subsequent drop reveals persisting volatility or market uncertainty impacting the company's financial standing.
MVA Margin
Airbnb 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 | ||||||
| Revenue | ||||||
| Add: Increase (decrease) in unearned fees | ||||||
| Adjusted revenue | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
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 ÷ Adjusted revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
The financial data reveals distinct trends across the reported periods for the analyzed company. The following analysis highlights the primary movements and implications based on the key metrics presented.
- Market Value Added (MVA)
- The market value added shows a downward trend over the five-year span. Beginning at a peak of approximately 122.7 billion US dollars in 2020, it decreased progressively to around 77.3 billion in 2022. A slight recovery was observed in 2023 with an increase to about 91.8 billion but this was followed by another decline to approximately 81.3 billion in 2024. This pattern suggests volatility in market valuation, with an overall contraction from the initial high point.
- Adjusted Revenue
- Adjusted revenue demonstrates a consistent upward trajectory across the entire period. Starting at approximately 3.1 billion US dollars in 2020, revenue more than tripled to nearly 11.3 billion by 2024. This steady growth reflects positive underlying operational performance and expansion in revenue-generating activities.
- MVA Margin (%)
- The MVA margin, which relates market value added to revenue, experienced a marked decline from an extremely high level of 3942.51% in 2020 to 719.74% in 2024. Despite the increase in absolute revenue figures, the relative efficiency or return measured by this margin decreased significantly. This suggests that while revenue grew, the market’s valuation of the company relative to its revenue base contracted substantially.
In summary, the data portrays a company that has achieved impressive revenue growth over the years but simultaneously faced a declining market value added and a sharply reduced market value efficiency ratio. This pattern could indicate challenges in translating revenue growth into corresponding increases in market valuation, possibly due to changing market perceptions, competitive dynamics, or other external factors impacting investor sentiment.