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.
MVA
Autodesk Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
The analysis of market value added (MVA) from 2019 to 2024 reveals a consistently high valuation premium, where the market's appraisal of the organization significantly exceeds the total invested capital. While the metric experienced notable volatility, it maintains a strong upward trajectory over the six-year horizon.
- Invested Capital Trends
- A consistent upward trend in invested capital is observed, rising from 4,412 million US dollars in 2019 to a peak of 7,372 million US dollars in 2023, before slightly stabilizing at 7,325 million US dollars in 2024. This indicates a steady increase in the capital base deployed to support operations and growth.
- Market Value Fluctuations
- The market value exhibited significant volatility, characterized by a substantial surge in 2021 to 59,621 million US dollars. Following this peak, a correction occurred in 2022, with values subsequently recovering to 48,843 million US dollars by 2024.
- Market Value Added (MVA) Dynamics
- The MVA mirrored the trajectory of the market value, reaching a peak of 53,897 million US dollars in 2021. Despite the correction observed in 2022, the MVA remained robust, ending the period at 41,518 million US dollars in 2024. The result is a net increase in value creation over the analyzed period, with the 2024 MVA being approximately 32% higher than the 31,416 million US dollars recorded in 2019.
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MVA Spread Ratio
Autodesk Inc., MVA spread ratio calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 41,518) | 37,636) | 36,985) | 53,897) | 29,811) | 31,416) | |
| Invested capital2 | 7,325) | 7,372) | 6,835) | 5,723) | 5,535) | 4,412) | |
| Performance Ratio | |||||||
| MVA spread ratio3 | 566.79% | 510.53% | 541.13% | 941.72% | 538.60% | 712.11% | |
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Accenture PLC | 524.20% | 487.90% | 442.58% | 739.74% | — | — | |
| Adobe Inc. | 642.58% | 991.60% | 658.07% | 1,033.13% | 1,082.99% | — | |
| AppLovin Corp. | 2,384.14% | 420.90% | 60.64% | 260.37% | — | — | |
| Cadence Design Systems Inc. | 910.94% | 1,934.83% | 1,302.22% | 1,110.87% | — | — | |
| Datadog Inc. | 1,526.17% | 2,743.24% | 1,772.59% | 5,219.74% | — | — | |
| International Business Machines Corp. | 162.99% | 100.96% | 60.62% | 55.46% | — | — | |
| Intuit Inc. | 624.57% | 573.60% | 406.80% | 1,175.12% | — | — | |
| Microsoft Corp. | 803.69% | 892.49% | 956.02% | 1,383.21% | — | — | |
| Oracle Corp. | 370.24% | 324.04% | 224.95% | 260.27% | — | — | |
| Palantir Technologies Inc. | 11,445.95% | 3,878.69% | 488.89% | 829.78% | — | — | |
| Palo Alto Networks Inc. | 894.07% | 731.80% | 559.30% | 573.51% | — | — | |
| Salesforce Inc. | 256.86% | 127.88% | 150.31% | 270.75% | — | — | |
| ServiceNow Inc. | 1,951.86% | 1,781.96% | 1,276.86% | 1,798.18% | — | — | |
| Synopsys Inc. | 645.36% | 973.25% | 565.55% | 707.79% | 468.10% | — | |
| Workday Inc. | 677.38% | 471.48% | 655.74% | 908.31% | — | — | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 MVA. See details »
2 Invested capital. See details »
3 2024 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 41,518 ÷ 7,325 = 566.79%
4 Click competitor name to see calculations.
The financial performance metrics for the period ending January 31, 2024, reveal a volatile trend in market value creation contrasted by a steady expansion of the capital base. While invested capital grew consistently over the majority of the period, the market value added (MVA) and the MVA spread ratio experienced significant fluctuations, peaking in 2021 before stabilizing in subsequent years.
- Market Value Added (MVA)
- MVA exhibited substantial volatility, starting at 31,416 million USD in 2019 and experiencing a sharp increase to a peak of 53,897 million USD by January 31, 2021. This peak was followed by a contraction to 36,985 million USD in 2022. A gradual recovery phase is observed from 2023 through 2024, with the value rising to 41,518 million USD by the end of the analyzed period.
- Invested Capital
- Invested capital demonstrated a consistent upward trajectory for five consecutive years, increasing from 4,412 million USD in 2019 to a peak of 7,372 million USD in 2023. This represents a significant expansion of the capital base used to generate value. A marginal decrease to 7,325 million USD was recorded in 2024, indicating a stabilization of capital investment.
- MVA Spread Ratio
- The MVA spread ratio, which measures the relationship between MVA and invested capital, mirrored the volatility of the MVA. The ratio declined from 712.11% in 2019 to 538.60% in 2020, before surging to a period high of 941.72% in 2021. Following this peak, the ratio corrected sharply to 541.13% in 2022 and reached its lowest point of 510.53% in 2023. A modest recovery to 566.79% occurred in 2024. Throughout the entire period, the ratio remained well above 500%, suggesting that the market value added consistently and significantly exceeded the invested capital.
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MVA Margin
Autodesk Inc., MVA margin calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 41,518) | 37,636) | 36,985) | 53,897) | 29,811) | 31,416) | |
| Net revenue | 5,497) | 5,005) | 4,386) | 3,790) | 3,274) | 2,570) | |
| Add: Increase (decrease) in deferred revenue | (316) | 790) | 430) | 353) | 916) | 136) | |
| Adjusted net revenue | 5,181) | 5,795) | 4,816) | 4,144) | 4,190) | 2,706) | |
| Performance Ratio | |||||||
| MVA margin2 | 801.34% | 649.46% | 767.95% | 1,300.77% | 711.47% | 1,160.93% | |
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Accenture PLC | 297.40% | 251.01% | 213.17% | 379.26% | — | — | |
| Adobe Inc. | 727.86% | 1,241.42% | 766.46% | 1,287.44% | 1,554.19% | — | |
| AppLovin Corp. | 2,302.25% | 576.21% | 113.54% | 521.30% | — | — | |
| Cadence Design Systems Inc. | 1,395.62% | 1,927.61% | 1,299.21% | 1,128.47% | — | — | |
| Datadog Inc. | 1,385.47% | 1,715.05% | 1,226.04% | 4,145.45% | — | — | |
| International Business Machines Corp. | 288.07% | 179.79% | 105.00% | 105.45% | — | — | |
| Intuit Inc. | 959.77% | 939.31% | 782.89% | 1,489.94% | — | — | |
| Microsoft Corp. | 1,123.50% | 1,016.40% | 916.17% | 1,148.11% | — | — | |
| Oracle Corp. | 704.48% | 626.94% | 412.88% | 514.72% | — | — | |
| Palantir Technologies Inc. | 9,929.53% | 2,081.46% | 820.15% | 1,366.76% | — | — | |
| Palo Alto Networks Inc. | 949.23% | 726.58% | 651.61% | 771.73% | — | — | |
| Salesforce Inc. | 593.57% | 323.34% | 417.33% | 620.94% | — | — | |
| ServiceNow Inc. | 1,605.68% | 1,433.58% | 1,026.11% | 1,555.49% | — | — | |
| Synopsys Inc. | 1,081.63% | 1,373.41% | 796.87% | 1,126.17% | 803.94% | — | |
| Workday Inc. | 754.19% | 578.30% | 888.92% | 1,185.07% | — | — | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Adjusted net revenue
= 100 × 41,518 ÷ 5,181 = 801.34%
3 Click competitor name to see calculations.
The financial performance from January 31, 2019, to January 31, 2024, is characterized by significant volatility in market valuation relative to revenue, featuring a prominent peak in 2021 followed by a correction phase and a subsequent gradual recovery.
- Market Value Added (MVA) Trends
- The MVA exhibited substantial fluctuations, increasing from $31.4 billion in 2019 to a peak of $53.9 billion in 2021. A sharp contraction followed in 2022, with the value dropping to $36.9 billion. A steady upward trajectory was observed between 2022 and 2024, with the MVA reaching $41.5 billion by the end of the period.
- Adjusted Net Revenue Trajectory
- Adjusted net revenue showed a consistent growth trend for most of the analyzed timeframe, rising from $2.7 billion in 2019 to a maximum of $5.8 billion in 2023. A moderate decline was recorded in 2024, with revenue settling at $5.2 billion.
- MVA Margin Interpretation
- The MVA margin mirrored the volatility of the MVA, reaching its highest point of 1,300.77% in 2021. A subsequent downward trend led to a low of 649.46% in 2023, occurring as adjusted net revenue continued to climb while market value remained relatively stagnant. The period concluded with a recovery in the margin to 801.34% in 2024, indicating an increase in market value relative to the contraction in adjusted net revenue.
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