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
AppLovin Corp., MVA calculation
US$ in thousands
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Fair value of debt. See details »
2 Invested capital. See details »
The market value of the company demonstrates significant volatility over the observed period. Initially, a substantial decrease is noted between 2021 and 2022, followed by a period of recovery and then dramatic growth in subsequent years. Invested capital exhibits a more stable pattern, with a general downward trend from 2021 to 2023, followed by relative stability and a final increase in 2025. Market value added (MVA) mirrors the fluctuations in market value, showing a corresponding decline from 2021 to 2022, recovery, and then substantial increases.
- Market Value Trend
- The market value experienced a considerable contraction from US$20,095,359 thousand in 2021 to US$8,428,692 thousand in 2022, representing a decrease of approximately 58%. This was followed by a recovery to US$23,515,675 thousand in 2023. However, the most significant growth occurred between 2023 and 2025, with market value increasing to US$112,756,864 thousand in 2024 and further to US$142,712,943 thousand in 2025. This represents a substantial increase over the five-year period, despite the initial decline.
- Invested Capital Trend
- Invested capital decreased from US$5,576,322 thousand in 2021 to US$4,514,462 thousand in 2023, indicating a reduction in the amount of funds employed in the business. The decline slowed between 2023 and 2024, with a slight increase to US$4,539,074 thousand. A more pronounced increase is observed in 2025, reaching US$5,644,387 thousand, exceeding the 2021 level.
- Market Value Added (MVA) Analysis
- MVA closely follows the trend of market value. The substantial decrease in market value in 2022 resulted in a corresponding decline in MVA to US$3,181,613 thousand. The recovery in market value in 2023 led to an increase in MVA to US$19,001,213 thousand. The dramatic growth in market value from 2023 to 2025 is reflected in the significant increases in MVA, reaching US$108,217,790 thousand in 2024 and US$137,068,556 thousand in 2025. This indicates a substantial creation of shareholder value during this period.
The relationship between invested capital and MVA suggests that, while invested capital remained relatively stable or decreased for a portion of the period, the company was able to generate significant increases in market value and, consequently, MVA. This could indicate improved efficiency in capital utilization or a positive shift in market perception.
MVA Spread Ratio
AppLovin Corp., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Datadog Inc. | ||||||
| International Business Machines Corp. | ||||||
| Intuit Inc. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| Palantir Technologies Inc. | ||||||
| Palo Alto Networks Inc. | ||||||
| Salesforce Inc. | ||||||
| ServiceNow Inc. | ||||||
| Synopsys Inc. | ||||||
| Workday Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
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 from 2021 to 2022, followed by a period of recovery and then dramatic growth in subsequent years. Invested capital demonstrated a generally decreasing trend from 2021 to 2023, with a slight increase in 2024 and a more pronounced increase in 2025. The MVA spread ratio, calculated as MVA divided by Invested Capital, reflects these movements, displaying a volatile pattern.
- MVA Trend
- The MVA began at US$14,519,037 thousand in 2021, declining sharply to US$3,181,613 thousand in 2022. A considerable recovery occurred in 2023, with MVA reaching US$19,001,213 thousand. Subsequent years witnessed exponential growth, with MVA increasing to US$108,217,790 thousand in 2024 and further to US$137,068,556 thousand in 2025. This suggests a significant improvement in the company’s ability to generate value for its investors in the later years of the period.
- Invested Capital Trend
- Invested capital decreased from US$5,576,322 thousand in 2021 to US$5,247,079 thousand in 2022, continuing its downward trajectory to US$4,514,462 thousand in 2023. A minor increase was observed in 2024, reaching US$4,539,074 thousand, followed by a more substantial increase to US$5,644,387 thousand in 2025. The increase in invested capital in 2025 may indicate renewed investment in the business.
- MVA Spread Ratio Trend
- The MVA spread ratio began at 260.37% in 2021, decreasing substantially to 60.64% in 2022, mirroring the decline in MVA. The ratio rebounded significantly in 2023 to 420.90%, then experienced dramatic increases in 2024 and 2025, reaching 2,384.14% and 2,428.40% respectively. This indicates that the company is generating a significantly higher return on its invested capital in the later years, as evidenced by the increasing ratio. The substantial increase in the ratio from 2023 onwards suggests a disproportionate growth in MVA relative to invested capital.
The observed trends suggest a period of initial underperformance followed by a substantial turnaround and period of high value creation. The increasing MVA spread ratio highlights the growing efficiency with which the company utilizes its invested capital to generate market value.
MVA Margin
AppLovin Corp., MVA margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Market value added (MVA)1 | ||||||
| Revenue | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted revenue | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Datadog Inc. | ||||||
| International Business Machines Corp. | ||||||
| Intuit Inc. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| Palantir Technologies Inc. | ||||||
| Palo Alto Networks Inc. | ||||||
| Salesforce Inc. | ||||||
| ServiceNow Inc. | ||||||
| Synopsys Inc. | ||||||
| Workday Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 MVA. See details »
2 2025 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
The Market Value Added (MVA) exhibited significant fluctuations over the observed period. Initially, a substantial decrease in MVA was noted, followed by considerable growth in subsequent years. This trend is reflected in the MVA margin, which demonstrates a similar pattern of volatility.
- Market Value Added (MVA)
- In 2021, the MVA stood at approximately US$14.52 million. A marked decline occurred in 2022, with the MVA decreasing to US$3.18 million. However, 2023 witnessed a strong recovery, bringing the MVA to US$19.00 million. Further substantial increases were observed in 2024 and 2025, reaching US$108.22 million and US$137.07 million, respectively. This indicates a period of increasing investor confidence and value creation in the latter years of the period.
- Adjusted Revenue
- Adjusted revenue showed a modest increase from US$2.79 million in 2021 to US$2.80 million in 2022. A more noticeable increase occurred in 2023, reaching US$3.30 million. Revenue continued its upward trajectory in 2024 and 2025, reaching US$4.70 million and US$5.49 million, respectively. The revenue growth, while positive, does not fully explain the dramatic swings observed in MVA.
- MVA Margin
- The MVA margin experienced considerable volatility. It began at a high of 521.30% in 2021, plummeted to 113.54% in 2022, and then rose to 576.21% in 2023. The most significant increase occurred between 2023 and 2024, with the margin surging to 2,302.25%. This upward trend continued into 2025, reaching 2,496.08%. The substantial increase in the MVA margin suggests that the company is generating a significantly higher return on its revenue in the later years, relative to its initial valuation. The disproportionate increase in MVA margin compared to revenue suggests factors beyond revenue growth are driving value creation.
The relationship between adjusted revenue and MVA margin indicates that changes in market perception and investor expectations play a crucial role in the company’s valuation. While revenue increased steadily, the MVA and its margin experienced more dramatic shifts, suggesting external factors or internal strategic changes significantly impacted investor sentiment.