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
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Analysis of Revenues
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MVA
Applied Materials Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).
1 Fair value of debt. See details »
2 Invested capital. See details »
- Market (fair) value of Applied
- The market value exhibits a fluctuating trend over the analyzed periods. Initially, there was a significant increase from 58,970 million USD in 2019 to 85,810 million USD in 2020, followed by an even more pronounced rise reaching 134,667 million USD in 2021. However, in 2022, the market value experienced a substantial decline to 91,662 million USD. This downturn was reversed in 2023 with a sharp recovery to 137,071 million USD, and a further, though smaller, increase to 143,319 million USD in 2024.
- Invested capital
- This indicator shows a consistent upward trend throughout the period examined. The invested capital increased from 10,129 million USD in 2019 to 13,090 million USD in 2020, then continued to grow steadily each year, reaching 22,135 million USD in 2024. This indicates continued investment or expansion in the company’s capital base over time.
- Market value added (MVA)
- The market value added, which represents the difference between market value and invested capital, largely mirrors the fluctuations observed in the market value. It increased markedly from 48,841 million USD in 2019 to a peak of 119,950 million USD in 2021. Following the decline observed in 2022 to 76,772 million USD, MVA rebounded to 119,294 million USD in 2023 before showing a slight increase to 121,184 million USD in 2024. This pattern suggests that shareholder value creation experienced volatility but remained strong overall, especially after the recovery in 2023.
MVA Spread Ratio
Applied Materials Inc., MVA spread ratio calculation, comparison to benchmarks
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| MVA spread ratio3 | |||||||
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Advanced Micro Devices Inc. | |||||||
| Analog Devices 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: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).
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 shows a general upward trend over the analyzed periods. Starting at $48,841 million in 2019, it increased substantially to $72,720 million in 2020, followed by a peak of $119,950 million in 2021. A decline is observed in 2022 to $76,772 million, but it recovered again in 2023 and 2024 to approximately $119,294 million and $121,184 million, respectively. This indicates fluctuations but an overall growth in shareholder wealth creation over the six-year span.
- Invested Capital
- Invested capital increased gradually over the years, from $10,129 million in 2019 to $22,135 million in 2024. The growth appears relatively steady, with moderate rises each year, reflecting ongoing investments in the business assets and possibly expansion or increased capacity.
- MVA Spread Ratio
- The MVA spread ratio, which measures the return spread of market value added relative to invested capital, remains substantially high throughout all periods, indicating efficient value creation. It peaked at 815.05% in 2021 consistent with the highest MVA level recorded in the same year. However, the ratio shows volatility with a decrease to 515.59% in 2022, followed by recovery to 671.06% in 2023 and a slight downturn to 547.48% in 2024. Despite these fluctuations, it reflects strong performance in generating returns above the capital invested.
- General Insights
- The data suggests that while invested capital has steadily grown, market value added has experienced more variability, possibly reflecting market or operational factors impacting company valuation. The MVA spread ratio's high values emphasize that the company has generally succeeded in generating significant returns over its invested capital throughout the period. The dip in both MVA and MVA spread in 2022 may warrant further investigation into specific causes during that fiscal year. Overall, the trends point towards robust financial health and effective capital utilization in recent years.
MVA Margin
Applied Materials Inc., MVA margin calculation, comparison to benchmarks
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | |||||||
| Net revenue | |||||||
| Performance Ratio | |||||||
| MVA margin2 | |||||||
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Advanced Micro Devices Inc. | |||||||
| Analog Devices 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: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25), 10-K (reporting date: 2019-10-27).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Net revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added showed notable fluctuations over the analyzed period. Starting at 48,841 million US dollars in 2019, it increased significantly to 72,720 million in 2020 and reached its peak at 119,950 million in 2021. A considerable decline followed in 2022 to 76,772 million, but the metric recovered sharply in the subsequent years, attaining 119,294 million in 2023 and slightly rising to 121,184 million in 2024. This pattern indicates periods of rapid value growth interrupted by a downturn, followed by a robust recovery.
- Net Revenue
- Net revenue exhibited a consistent upward trend over the years. Starting from 14,608 million US dollars in 2019, revenue increased annually, reaching 17,202 million in 2020, 23,063 million in 2021, 25,785 million in 2022, 26,517 million in 2023, and 27,176 million in 2024. This demonstrates steady growth in operational income, reflecting expanding sales or service results over the period.
- MVA Margin
- The MVA margin, expressed as a percentage, showed significant variation. It rose markedly from 334.35% in 2019 to a high of 520.1% in 2021. Subsequently, there was a sharp decline to 297.74% in 2022, coinciding with the dip in Market Value Added. The margin then increased again to levels above 440% in 2023 and slightly decreased to 445.92% in 2024. Such fluctuations suggest shifts in the relationship between market value creation and net revenue, with periods of exceptional market value generation relative to revenue, interspersed with a decline and recovery phase.