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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- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Geographic Areas
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Return on Assets (ROA) since 2005
- Price to Sales (P/S) since 2005
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MVA
Analog Devices Inc., MVA calculation
US$ in thousands
Based on: 10-K (reporting date: 2024-11-02), 10-K (reporting date: 2023-10-28), 10-K (reporting date: 2022-10-29), 10-K (reporting date: 2021-10-30), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-11-02).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Analog Devices
- The market value demonstrates an overall upward trend from 2019 through 2024. Starting at approximately $48.5 billion in 2019, it increased steadily to over $56.6 billion in 2020. A significant surge is observed in 2021, when the market value nearly doubled to approximately $102.5 billion. Subsequently, a decline occurred in 2022, bringing the value down to $91.6 billion, which then rebounded modestly in 2023 to around $96.2 billion. The latest figure in 2024 shows another substantial increase to approximately $115.5 billion, marking the highest market valuation within the observed period.
- Invested capital
- The invested capital remained relatively stable between 2019 and 2020, at around $18.3 billion and $18.2 billion respectively. In 2021, there was a notable increase to approximately $47 billion, more than doubling the previous amounts. Following 2021, invested capital showed a gradual decline over the subsequent years: decreasing to about $45 billion in 2022, then to $44.2 billion in 2023, and further declining to $43.5 billion in 2024. This suggests a continued reduction in invested capital after the peak in 2021.
- Market value added (MVA)
- MVA, which represents the difference between market value and invested capital, displayed an increasing trend from 2019 to 2021. It rose from approximately $30.1 billion in 2019 to $38.4 billion in 2020 and further to $55.5 billion in 2021, aligning with the peak in invested capital and market value in that year. However, MVA declined to about $46.6 billion in 2022, signaling a decrease in market premium relative to invested capital. A recovery is evident in 2023 with MVA increasing to approximately $52 billion, followed by a strong surge in 2024, reaching around $72 billion, which is the highest in the period and indicative of enhanced market confidence or improved value creation beyond invested capital.
- Summary of trends
- Overall, the financial data indicate a company experiencing significant growth in market valuation, particularly in 2021 and again in 2024. Invested capital peaked in 2021 but has since declined steadily, which may indicate strategic capital management or divestment. The market value added follows a similar pattern of growth and correction, ultimately achieving a peak in 2024, which suggests that investor perceptions of value creation relative to invested capital have improved markedly by the end of the period analyzed.
MVA Spread Ratio
Analog Devices Inc., MVA spread ratio calculation, comparison to benchmarks
| Nov 2, 2024 | Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | Nov 2, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Market value added (MVA)1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| MVA spread ratio3 | |||||||
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Advanced Micro 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: 2024-11-02), 10-K (reporting date: 2023-10-28), 10-K (reporting date: 2022-10-29), 10-K (reporting date: 2021-10-30), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-11-02).
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 demonstrated a fluctuating trend over the analyzed period. It rose from approximately $30.1 billion in late 2019 to a peak around $55.5 billion in late 2021. Subsequently, it declined to about $46.6 billion in 2022, followed by a recovery to $52.0 billion in 2023 and a substantial increase reaching approximately $72.0 billion in 2024. This pattern indicates periods of both growth and correction, with a strong upward movement in the most recent year.
- Invested Capital
- The invested capital increased sharply from 2019 to 2021, moving from about $18.3 billion to roughly $47.0 billion. After this significant rise, it showed a gradual decline over the next three years, settling around $43.5 billion in 2024. The initial rise may suggest heavy capital investment or acquisitions, followed by a period of reduced capital deployment or divestitures.
- MVA Spread Ratio
- The MVA spread ratio experienced notable variation throughout the period. It started at 164.19% in 2019, peaked notably at 210.89% in 2020, then dropped significantly in subsequent years, reaching approximately 103.56% in 2022. After this decline, the ratio showed improvement in 2023 and a marked recovery to 165.45% in 2024. These fluctuations indicate shifts in the company's ability to generate value beyond its invested capital, with the highest relative value creation observed in 2020 and renewed strength by 2024.
- Overall Insights
- The data reveals dynamic changes in company valuation and capital structure over the six-year span. The considerable rise and subsequent moderation in invested capital coupled with fluctuating MVA and MVA spread ratios suggest strategic shifts influencing value creation. The recovery in market value added and MVA spread ratio in the latest period points toward renewed investor confidence and improved capital efficiency.
MVA Margin
Analog Devices Inc., MVA margin calculation, comparison to benchmarks
| Nov 2, 2024 | Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | Nov 2, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Market value added (MVA)1 | |||||||
| Revenue | |||||||
| Performance Ratio | |||||||
| MVA margin2 | |||||||
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Advanced Micro 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: 2024-11-02), 10-K (reporting date: 2023-10-28), 10-K (reporting date: 2022-10-29), 10-K (reporting date: 2021-10-30), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-11-02).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added exhibited an overall increasing trend over the analysis period. Starting at approximately 30.1 billion US dollars in 2019, it increased notably to about 38.4 billion in 2020 and further to 55.5 billion in 2021. Following a decline to 46.6 billion in 2022, it rebounded to 52.0 billion in 2023 and surged significantly to 72.0 billion in 2024. This pattern indicates strong market value creation with some volatility, particularly the drop in 2022 followed by a robust recovery.
- Revenue
- Revenue displayed fluctuations during the period. It started at nearly 6.0 billion US dollars in 2019, decreased to about 5.6 billion in 2020, then rose substantially to 7.3 billion in 2021. A marked increase was observed in 2022, with revenue reaching approximately 12.0 billion, followed by a slight increase to 12.3 billion in 2023. However, in 2024 revenue dropped to around 9.4 billion. This shows a sharp growth phase until 2023, succeeded by some contraction in the latest year.
- MVA Margin
- The MVA margin showed significant variability throughout the period. It started at roughly 503% in 2019, increased to approximately 685% in 2020, and peaked at around 758% in 2021. A considerable decline followed in 2022, with the margin dropping to 388%, before modest recovery in 2023 to roughly 423%. In 2024, the margin rose sharply again to about 764%, indicating improved efficiency or market perception relative to revenue.
- Overall Insights
- The data reveals a dynamic financial performance characterized by substantial growth in market value and revenue through much of the analyzed timeline, tempered by notable fluctuations. Market value and MVA margin movements suggest periods of enhanced value creation and efficiency, despite some setbacks. The sharp rise in market value and margin in 2024, alongside a revenue decrease, may point toward factors such as improved profitability, cost management, or favorable market conditions influencing valuation beyond revenue figures alone.