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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- Income Statement
- Statement of Comprehensive Income
- Common-Size Balance Sheet: Assets
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Capital Asset Pricing Model (CAPM)
- Operating Profit Margin since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
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MVA
Apple Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 Fair value of debt. See details »
2 Invested capital. See details »
The analysis of the annual financial data reveals notable trends in the market value, invested capital, and market value added for the periods examined.
- Market (fair) value of Apple
- The market value exhibited substantial growth over the six-year period, increasing from approximately $1.07 trillion in 2019 to over $3.35 trillion in 2024. The increase was particularly sharp between 2019 and 2021, with the value more than doubling during this interval. From 2021 onwards, the market value continued to grow but at a moderately slower pace, with a noticeable surge again in 2024.
- Invested Capital
- Invested capital showed variability across the years, starting at around $50.7 billion in 2019 and decreasing to $36.3 billion in 2020. Subsequently, it increased to a peak of approximately $60.2 billion in 2023 before declining again to about $50.1 billion in 2024. This fluctuation indicates changes in the capital employed by the company, potentially reflecting shifts in asset investment or working capital requirements.
- Market Value Added (MVA)
- The market value added, representing the difference between market value and invested capital, closely mirrored the pattern of the market value, increasing substantially from roughly $1.02 trillion in 2019 to $3.30 trillion in 2024. The years 2019 to 2021 saw a marked rise in MVA, indicating that the company generated significant value over the invested capital during this period. Although the growth rate moderated after 2021, MVA maintained an upward trajectory, signaling sustained value creation.
Overall, the data suggests a strong positive trend in market valuation and value creation over the period, despite fluctuations in invested capital. The significant expansion in market value and MVA highlights the company's enhanced market perception and capacity to generate value beyond its invested resources.
MVA Spread Ratio
Apple Inc., MVA spread ratio calculation, comparison to benchmarks
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| MVA spread ratio3 | |||||||
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Arista Networks Inc. | |||||||
| Cisco Systems Inc. | |||||||
| Dell Technologies Inc. | |||||||
| Super Micro Computer Inc. | |||||||
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
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 displays a consistent upward trend over the observed periods. Starting from approximately 1.02 trillion US dollars in September 2019, it nearly doubled by September 2020 and continued to rise substantially each year, reaching approximately 3.30 trillion US dollars by September 2024. The growth rate appears robust, despite a slight deceleration in the increase from 2021 to 2022, followed by renewed acceleration in subsequent years.
- Invested Capital
- Invested capital shows variability across the periods. Beginning at 50.7 billion US dollars in September 2019, it decreased to a low of 36.3 billion in 2020, then gradually increased to a peak of 60.2 billion in September 2023 before declining again to 50.1 billion by September 2024. This fluctuation indicates changes in the company's capital investment strategy or asset base, with no clear long-term growth trend.
- MVA Spread Ratio
- The MVA spread ratio exhibits significant fluctuations throughout the years. It initially stands at approximately 2013% in 2019, surges to a peak of 5626% in 2021, temporarily declines in 2023, and then climbs to the highest level recorded at nearly 6597% in 2024. These values suggest that the company’s market value substantially exceeds the invested capital, showcasing strong value creation. The volatility may reflect variations in market perceptions, investment efficiency, or profitability over the periods.
- Overall Insights
- Overall, the data reflects a company that has experienced substantial growth in market value added, far outpacing its invested capital. This dynamic has led to a remarkably high MVA spread ratio, indicating strong returns on invested capital from a market perspective. Although invested capital fluctuates without a clear increasing pattern, the rising MVA and spread ratio signals effective capital deployment and favorable market valuation trends over the analyzed periods.
MVA Margin
Apple Inc., MVA margin calculation, comparison to benchmarks
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Net sales | |||||||
| Add: Increase (decrease) in deferred revenue | |||||||
| Adjusted net sales | |||||||
| Performance Ratio | |||||||
| MVA margin2 | |||||||
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Arista Networks Inc. | |||||||
| Cisco Systems Inc. | |||||||
| Dell Technologies Inc. | |||||||
| Super Micro Computer Inc. | |||||||
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Adjusted net sales
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added exhibited a consistent upward trend over the six-year period. Starting at approximately 1.02 million US dollars in 2019, it rose steadily each year to reach about 3.30 million US dollars by 2024. The increase was particularly pronounced between 2023 and 2024, indicating enhanced market valuation.
- Adjusted Net Sales
- Adjusted Net Sales showed consistent growth from 2019 to 2022, increasing from around 259 billion to nearly 395 billion US dollars. Although there was a slight decrease in 2023 to approximately 383 billion, sales rebounded in 2024 to reach about 392 billion US dollars, almost recovering to the previous peak levels.
- MVA Margin
- The MVA margin, expressed as a percentage, demonstrated a significant growth trend throughout the analyzed period. Beginning at nearly 393% in 2019, it rose sharply to about 648% in 2020, maintained a similar level in 2021, and then experienced minor fluctuations before escalating to 843% in 2024. This suggests a growing efficiency in generating market value relative to net sales.