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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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Enterprise Value (EV)
- Present Value of Free Cash Flow to Equity (FCFE)
- Price to Earnings (P/E) since 2012
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MVA
Meta Platforms Inc., MVA calculation
US$ in millions
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 »
- Market (fair) value of Meta
- The market value experienced a decline from 721,432 million US dollars at the end of 2020 to 489,341 million US dollars by the end of 2022, indicating a downward trend over these two years. However, this trend reversed significantly in the subsequent years, with the market value increasing sharply to 1,225,420 million US dollars in 2023 and further rising to 1,755,471 million US dollars by the end of 2024. This demonstrates a strong market recovery and growth in valuation in the latter period.
- Invested capital
- Invested capital showed a consistent upward trajectory throughout the five-year period. Beginning at 80,951 million US dollars in 2020, it increased steadily each year, reaching 165,969 million US dollars by the end of 2024. This suggests ongoing investment in the company’s operations and assets, more than doubling the invested capital over the period under review.
- Market value added (MVA)
- Market value added, representing the difference between the market value and invested capital, mirrors the trends seen in market value. It decreased from 640,481 million US dollars in 2020 to 387,577 million US dollars in 2022, highlighting a period of reduced value creation or market confidence. Subsequently, it increased substantially to over one trillion US dollars by the end of 2023 (1,084,096 million) and further to 1,589,502 million US dollars in 2024, indicating a significant enhancement in shareholder value and the company's ability to generate returns above its invested capital.
- Summary of trends and insights
- Overall, the data reveals two distinct phases within the five-year span. The initial phase from 2020 to 2022 was marked by declining market valuation and MVA, despite steady increases in invested capital. This might indicate challenges faced by the company that affected market perceptions or profitability. The second phase, covering 2023 and 2024, showed a pronounced rebound with substantial increases in market value and market value added, alongside frequent and consistent investments. This turnaround suggests an improvement in market conditions, operational performance, or strategic initiatives enhancing investor confidence and generating significant value in excess of invested capital.
MVA Spread Ratio
Meta Platforms 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 millions) | ||||||
| Market value added (MVA)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| MVA spread ratio3 | ||||||
| Benchmarks | ||||||
| MVA Spread Ratio, Competitors4 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
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 exhibits a fluctuating trend over the analyzed period. It decreased from 640,481 million US dollars in 2020 to 387,577 million US dollars in 2022, representing a significant decline. However, from 2022 onward, there is a marked recovery and growth, with MVA increasing substantially to reach 1,589,502 million US dollars by the end of 2024. This reflects a strong rebound and growth phase in market valuation post-2022.
- Invested Capital
- Invested capital shows a consistent upward trajectory throughout the five-year span. Starting at 80,951 million US dollars in 2020, it grows steadily each year, reaching 165,969 million US dollars in 2024. This expansion indicates continuous investment and capital allocation, nearly doubling over the period, which supports the company's growth and operational capacity.
- MVA Spread Ratio
- The MVA spread ratio, which measures the efficiency or productivity of invested capital in generating market value, follows a trend similar to MVA. It declines from a high of 791.2% in 2020 to 380.86% in 2022, indicating reduced returns relative to invested capital during this period. Subsequently, there is a significant improvement, rising to 957.71% by 2024. This sharp increase suggests a considerable enhancement in value creation and overall capital efficiency in recent years.
- Summary of Trends
- The financial data reveals a period of contraction in value generation from 2020 to 2022, with decreases in both market value added and MVA spread ratio despite growing invested capital. From 2022 forward, the data signals a robust recovery and considerable value creation, with sharp increases in market value added and a notably improved MVA spread ratio. The steady rise in invested capital throughout the entire period underscores a strategic commitment to investment, likely fueling the accelerated growth observed in the latter years.
MVA Margin
Meta Platforms 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 millions) | ||||||
| Market value added (MVA)1 | ||||||
| Revenue | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted revenue | ||||||
| Performance Ratio | ||||||
| MVA margin2 | ||||||
| Benchmarks | ||||||
| MVA Margin, Competitors3 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
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 exhibits notable fluctuations over the observed periods. It starts at 640,481 million US dollars at the end of 2020, followed by a decline in the subsequent two years, reaching a low of 387,577 million in 2022. However, this trend reverses markedly in 2023, with MVA more than doubling to 1,084,096 million, and continuing to increase significantly in 2024, reaching 1,589,502 million. This pattern suggests a period of reduced market value creation in the early years, then a strong recovery and growth in the latter years.
- Adjusted Revenue
- Adjusted revenue shows a generally upward trajectory across the five-year span. Beginning at 86,066 million US dollars in 2020, it increases sharply to 118,154 million in 2021. A slight dip is observed in 2022, where revenue is reported at 116,539 million. After 2022, revenue grows steadily, reaching 135,051 million in 2023 and then rising further to 164,598 million in 2024. The data indicates consistent revenue growth overall, with only a minor setback in 2022.
- MVA Margin
- The MVA margin, defined as the ratio of Market Value Added to Adjusted Revenue, exhibits significant volatility. Starting at a very high level of 744.17% in 2020, the margin decreases substantially over the next two years to 454.84% in 2021 and further to 332.57% in 2022. This reduction aligns with the declining MVA during the same period. A strong rebound occurs in 2023, where the margin surges to 802.73%, surpassing the initial 2020 level, and continues to increase to 965.69% in 2024. These movements highlight a correlation between market valuation improvements and profitability or value creation relative to revenue during the later years.