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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- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Capital Asset Pricing Model (CAPM)
- Net Profit Margin since 2019
- Operating Profit Margin since 2019
- Current Ratio since 2019
- Debt to Equity since 2019
- Price to Earnings (P/E) since 2019
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MVA
Datadog Inc., MVA calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2020-12-31).
1 Fair value of debt. See details »
2 Invested capital. See details »
The analysis of the provided financial data reveals several notable trends over the examined five-year period.
- Market (fair) value of Datadog
- There was a substantial increase from approximately 29.7 billion US dollars at the end of 2020 to over 50.9 billion US dollars by the end of 2021, representing a significant growth phase. However, this was followed by a sharp decline to around 23.9 billion by the end of 2022. Recovery is observed in subsequent years, with the market value climbing again to about 41.9 billion and 42.5 billion in 2023 and 2024 respectively. Despite this recovery, the market value at the end of 2024 remains below the 2021 peak.
- Invested capital
- The invested capital steadily increased throughout the period, more than quintupling from approximately 517 million US dollars in 2020 to around 2.6 billion US dollars in 2024. This growth indicates ongoing capital investments and expansion efforts by the company over the timeframe analyzed.
- Market value added (MVA)
- The MVA trend closely follows that of the market value, starting at about 29.2 billion US dollars in 2020 and increasing sharply to 50 billion in 2021. This was followed by a decline to approximately 22.6 billion in 2022, mirroring the market value decrease. The MVA then increased again to roughly 40.5 billion in 2023 but slightly decreased to nearly 39.9 billion in 2024. This pattern suggests that the company’s market perception and value creation relative to invested capital fluctuate significantly but continue to represent substantial added market value.
Overall, the data indicate a period marked by high volatility in market valuation, with marked growth followed by notable declines and partial recovery, while invested capital increased consistently, highlighting ongoing investment in the business. The interplay of these variables suggests a dynamic growth environment with fluctuating market confidence but continued capital commitment.
MVA Spread Ratio
Datadog Inc., MVA spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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. | ||||||
| Fair Isaac Corp. | ||||||
| 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: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
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 experienced a notable increase from approximately 29.16 billion USD in 2020 to a peak of around 50.01 billion USD in 2021. However, it declined sharply to about 22.62 billion USD in 2022. The value rebounded to 40.46 billion USD in 2023 but slightly decreased again to 39.93 billion USD in 2024. This suggests volatility in the company's market valuation over the period reviewed, with peak performance observed in 2021 followed by fluctuations in subsequent years.
- Invested Capital
- Invested capital steadily grew year-over-year, starting from approximately 517 million USD in 2020 and rising to 2.62 billion USD by 2024. This consistent increase indicates ongoing investment into the company's operations or assets, reflecting a strategic emphasis on expanding capital base over the analyzed periods.
- MVA Spread Ratio
- The MVA spread ratio saw a significant decrease from an extremely high level of 5640.23% in 2020 to 5219.74% in 2021, and then dropped drastically to 1772.59% in 2022. Although it experienced some recovery to 2743.24% in 2023, it declined again to 1526.17% in 2024. This downward trend indicates that the market value added compared to invested capital diminished substantially over time, highlighting decreased efficiency or perceived returns on the capital invested despite the increasing invested capital.
MVA Margin
Datadog Inc., MVA margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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. | ||||||
| Fair Isaac Corp. | ||||||
| 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: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 MVA. See details »
2 2024 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenue
= 100 × ÷ =
3 Click competitor name to see calculations.
- Market Value Added (MVA)
- The Market Value Added (MVA) displayed significant fluctuation over the observed periods. Starting at approximately 29.2 billion US dollars in 2020, MVA increased markedly to a peak of about 50 billion US dollars in 2021. However, this was followed by a sharp decline to roughly 22.6 billion US dollars in 2022. Subsequently, the MVA rebounded to around 40.5 billion US dollars in 2023 before experiencing a slight decrease to approximately 39.9 billion US dollars in 2024. This trend suggests notable volatility in the company's market valuation over the years, with substantial recovery after a steep downturn in 2022.
- Adjusted Revenue
- Adjusted revenue demonstrated consistent and strong growth throughout the entire period. From an initial value of about 673 million US dollars in 2020, revenue almost doubled to over 1.2 billion US dollars in 2021. This upward trajectory continued, with revenues reaching approximately 1.85 billion, 2.36 billion, and 2.88 billion US dollars in 2022, 2023, and 2024, respectively. The steady increase reflects robust business expansion and potentially higher market demand or improved sales performance during these years.
- MVA Margin
- The MVA margin revealed a declining trend across the analyzed timeframe. Beginning with a very high margin of approximately 4330.71% in 2020, the margin saw a slight decrease to around 4145.45% in 2021, followed by a more considerable reduction to 1226.04% in 2022. Despite some recovery to 1715.05% in 2023, the margin fell again to 1385.47% in 2024. Although still notably elevated, the overall decrease in MVA margin suggests that market value growth relative to adjusted revenue has diminished over time, indicating potential changes in investor perception or market conditions affecting the company's valuation relative to its revenue base.