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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MVA
Alphabet 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 Alphabet
- The market value exhibited significant fluctuations over the five-year period. It increased substantially from US$1,313,275 million in 2020 to a peak of US$1,866,364 million in 2021. This was followed by a pronounced decline to US$1,282,690 million in 2022. Subsequently, the market value rebounded again, reaching US$1,703,428 million in 2023 and further rising to the highest recorded value of US$2,311,691 million by the end of 2024. The trend suggests a volatile market perception with a strong recovery trajectory post-2022.
- Invested capital
- Invested capital demonstrated a generally upward trend during the timeframe, starting at US$145,844 million in 2020 and increasing steadily each year with a slight dip in 2023. Specifically, it grew to US$171,408 million in 2021 and then to US$202,355 million in 2022. In 2023, there was a modest decrease to US$189,779 million, before rising again to US$227,952 million in 2024. Overall, the invested capital growth indicates continuing expansion and reinvestment of resources despite a short-term contraction.
- Market value added (MVA)
- Market value added (MVA), representing the value created beyond the invested capital, closely mirrors the fluctuations observed in the market value. It showed steady growth from US$1,167,431 million in 2020 to a high of US$1,694,956 million in 2021, followed by a notable decline to US$1,080,335 million in 2022. A recovery phase ensued with MVA rising to US$1,513,649 million in 2023 and continuing to increase to US$2,083,739 million in 2024. The pattern underscores a strong ability to generate market value in excess of invested capital over time, despite episodic declines.
MVA Spread Ratio
Alphabet Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
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 displayed fluctuations over the five-year period. Starting at approximately 1.17 trillion US dollars in 2020, it increased significantly to around 1.69 trillion in 2021, then declined to about 1.08 trillion in 2022. Subsequently, it rose again to roughly 1.51 trillion in 2023 and continued its upward trajectory to reach approximately 2.08 trillion in 2024. This pattern indicates periods of considerable market value growth interspersed with a notable dip in 2022 before a strong recovery and growth in the following years.
- Invested Capital
- The invested capital showed a generally increasing trend with minor variability. It started at roughly 146 billion US dollars at the end of 2020 and increased steadily to about 171 billion in 2021. In 2022, the invested capital rose further to approximately 202 billion but then decreased slightly to nearly 190 billion in 2023. In 2024, it climbed again to reach approximately 228 billion. Despite the minor dip in 2023, the overall trend reflects consistent growth in invested capital over the period.
- MVA Spread Ratio
- The MVA spread ratio, which measures the market value added relative to invested capital, exhibited variability while generally maintaining high levels. The ratio increased from about 800% in 2020 to nearly 989% in 2021, followed by a significant decline to approximately 534% in 2022. It then bounced back to around 798% in 2023 and improved again to nearly 914% in 2024. This trend suggests fluctuations in the efficiency or value creation relative to invested capital, with a strong recovery after the dip in 2022.
MVA Margin
Alphabet 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 | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted revenues | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
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 revenues
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The MVA exhibits significant fluctuations over the observed periods. It increased notably from US$1,167,431 million in 2020 to US$1,694,956 million in 2021, demonstrating strong growth. However, in 2022, there was a marked decline to US$1,080,335 million. The value rebounded to US$1,513,649 million in 2023 and continued to grow impressively to US$2,083,739 million in 2024, reaching the highest point in the period analyzed.
- Adjusted Revenues
- There is a consistent upward trend in adjusted revenues over the five years. Beginning at US$183,285 million in 2020, revenues increased steadily year-on-year, reaching US$350,970 million in 2024. This continuous growth signals robust expansion in operational performance and top-line strength.
- MVA Margin
- The MVA margin followed a varying pattern across the years. It started at 636.95% in 2020, slightly increasing to 655.85% in 2021, which corresponds with the growth in MVA. In 2022, the margin decreased substantially to 381.04%, paralleling the drop in MVA during that year. The margin improved again to 491.55% in 2023 and further to 593.71% in 2024, indicating enhanced value creation relative to revenues towards the end of the period.