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
Cisco Systems Inc., MVA calculation
US$ in millions
Based on: 10-K (reporting date: 2026-07-25), 10-K (reporting date: 2025-07-26), 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
The analysis of Market Value Added (MVA) reveals a period of volatility between 2021 and 2024, followed by an accelerated expansion in shareholder value creation through 2026. The MVA, representing the difference between the total market value and the invested capital, serves as a primary indicator of the premium the market assigns to the company's strategic assets and future growth prospects.
- Market Value Trajectory
- The market valuation exhibited significant fluctuations in the early period, declining from 246,684 million in 2021 to a low of 185,576 million in 2022. Following a period of instability between 2023 and 2024, a strong upward trend is observed starting in 2025, with the valuation peaking at 453,871 million by 2026.
- Invested Capital Trends
- Capital investment remained relatively stable between 2021 and 2023, fluctuating minimally around the 57,000 to 59,000 million range. A substantial increase occurred in 2024, where invested capital rose to 91,785 million. This elevated level of investment persisted through 2025 and increased further to 97,313 million by 2026, indicating a significant expansion of the company's capital base.
- Market Value Added (MVA) Performance
- MVA experienced a downward trend from 2021 to 2024, falling from 189,224 million to 126,460 million. This decline was driven by a combination of fluctuating market values and the sharp increase in invested capital during 2024. However, a reversal is observed in the final two years, with MVA rising to 197,995 million in 2025 and reaching a period high of 356,558 million in 2026. The rapid growth in MVA during this final stage suggests that market appreciation significantly outpaced the increase in invested capital.
Overall, the data indicates that while the company faced a period of value contraction and increased capital expenditure between 2021 and 2024, the subsequent surge in market valuation has resulted in a substantial increase in the premium over invested capital by 2026.
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MVA Spread Ratio
Cisco Systems Inc., MVA spread ratio calculation, comparison to benchmarks
| Jul 25, 2026 | Jul 26, 2025 | Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 356,558) | 197,995) | 126,460) | 164,993) | 126,513) | 189,224) | |
| Invested capital2 | 97,313) | 91,789) | 91,785) | 58,979) | 59,063) | 57,460) | |
| Performance Ratio | |||||||
| MVA spread ratio3 | 366.40% | 215.71% | 137.78% | 279.75% | 214.20% | 329.31% | |
| Benchmarks | |||||||
| MVA Spread Ratio, Competitors4 | |||||||
| Apple Inc. | — | 4,399.46% | 6,597.47% | 4,423.16% | 5,157.62% | 5,626.48% | |
| Arista Networks Inc. | — | 2,280.58% | 2,039.51% | 1,575.63% | 1,226.33% | 1,872.91% | |
| Dell Technologies Inc. | 137.37% | 89.00% | 100.40% | 2.11% | 31.48% | 53.40% | |
| Lumentum Holdings Inc. | 1,875.22% | 262.78% | 85.12% | 73.48% | 196.72% | 256.49% | |
| Super Micro Computer Inc. | 46.81% | 176.10% | 281.28% | 466.63% | 91.12% | 50.17% | |
Based on: 10-K (reporting date: 2026-07-25), 10-K (reporting date: 2025-07-26), 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31).
1 MVA. See details »
2 Invested capital. See details »
3 2026 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 356,558 ÷ 97,313 = 366.40%
4 Click competitor name to see calculations.
The financial trajectory from 2021 to 2026 is characterized by cyclical movements in shareholder value creation and a significant step-up in capital deployment. The period concludes with a substantial increase in both the absolute market value added and the efficiency of that value relative to invested capital.
- Market Value Added (MVA)
- MVA exhibited notable volatility, declining from US$ 189,224 million in 2021 to a trough of US$ 126,460 million in 2024. A sharp reversal occurred in the final two years of the period, with the value ascending to US$ 197,995 million in 2025 and peaking at US$ 356,558 million by July 2026.
- Invested Capital
- Invested capital remained relatively stagnant between 2021 and 2023, averaging approximately US$ 58,500 million. A significant shift occurred in July 2024, when invested capital increased to US$ 91,785 million. This expanded capital base remained stable through 2025 before rising further to US$ 97,313 million in 2026.
- MVA Spread Ratio
- The spread ratio mirrored the volatility of the MVA while being influenced by the expansion of the capital base. After starting at 329.31% in 2021, the ratio entered a general decline, reaching its lowest point of 137.78% in 2024. This decline was driven by the simultaneous contraction of MVA and the sharp increase in invested capital. However, a strong recovery followed, with the ratio climbing to 366.40% by 2026, signaling that market value growth far exceeded the growth in invested capital during the latter stage of the period.
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MVA Margin
Cisco Systems Inc., MVA margin calculation, comparison to benchmarks
| Jul 25, 2026 | Jul 26, 2025 | Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Market value added (MVA)1 | 356,558) | 197,995) | 126,460) | 164,993) | 126,513) | 189,224) | |
| Revenue | 63,325) | 56,654) | 53,803) | 56,998) | 51,557) | 49,818) | |
| Add: Increase (decrease) in deferred revenue | 1,002) | 304) | 2,925) | 2,286) | 1,100) | 1,718) | |
| Adjusted revenue | 64,327) | 56,958) | 56,728) | 59,284) | 52,657) | 51,536) | |
| Performance Ratio | |||||||
| MVA margin2 | 554.29% | 347.62% | 222.92% | 278.31% | 240.26% | 367.17% | |
| Benchmarks | |||||||
| MVA Margin, Competitors3 | |||||||
| Apple Inc. | — | 937.94% | 843.30% | 695.76% | 609.53% | 653.71% | |
| Arista Networks Inc. | — | 1,409.44% | 1,444.26% | 1,189.41% | 844.93% | 1,097.06% | |
| Dell Technologies Inc. | 67.49% | 48.09% | 61.61% | 1.17% | 16.47% | 45.88% | |
| Lumentum Holdings Inc. | 2,943.56% | 486.10% | 191.62% | 120.58% | 287.34% | 289.28% | |
| Super Micro Computer Inc. | 29.27% | 90.82% | 142.99% | 158.10% | 38.75% | 18.09% | |
Based on: 10-K (reporting date: 2026-07-25), 10-K (reporting date: 2025-07-26), 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31).
1 MVA. See details »
2 2026 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenue
= 100 × 356,558 ÷ 64,327 = 554.29%
3 Click competitor name to see calculations.
The financial trajectory between July 2021 and July 2026 is characterized by initial volatility in shareholder value creation followed by a period of significant expansion. While both market value added and revenue experienced fluctuations in the early part of the period, a sharp acceleration in value capture is evident in the final two years.
- Market Value Added (MVA)
- A non-linear trend is observed in MVA, which declined from US$ 189,224 million in 2021 to US$ 126,513 million in 2022. Despite a partial recovery in 2023, value added retreated again to US$ 126,460 million by July 2024. However, this was followed by a substantial upward shift, with MVA reaching US$ 197,995 million in 2025 and peaking at US$ 356,558 million in 2026, representing a significant increase in the market's valuation of the company relative to its capital invested.
- Adjusted Revenue
- Adjusted revenue demonstrated moderate growth and stability. Following an increase from US$ 51,536 million in 2021 to a peak of US$ 59,284 million in 2023, a slight contraction occurred in 2024. Revenue then stabilized around US$ 56,958 million in 2025 before rising to US$ 64,327 million by July 2026.
- MVA Margin
- The MVA margin reflects the volatility of the MVA figures, starting at 367.17% in 2021 and reaching a period low of 222.92% in 2024. A strong recovery is noted thereafter, with the margin expanding to 347.62% in 2025 and surging to 554.29% in 2026. This indicates that the growth in market value added significantly outpaced the growth in adjusted revenue during the final two years of the observed period, suggesting enhanced market confidence or improved capital efficiency.
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